Welcome to Extreme Investor Network, where we provide you with exclusive insights and analysis on the latest trends in the investing world. Today, we’re diving into the world of short selling and potential short squeeze opportunities in the market.
You may have heard that the meme stock rally has died down, but some familiar names from the frenzy are once again catching the attention of short sellers. GameStop, the poster child of the meme stock craze, has reemerged as a favorite target for short sellers. Short interest in GameStop jumped 6% to over 68 million shares as of May 15, accounting for more than 25% of its float. This surge came as “Roaring Kitty,” the retail investor who sparked the GameStop short squeeze in 2021, made a comeback online, sending shares soaring.
Short selling is a high-risk strategy used by hedge funds and retail investors to profit from a decline in a stock’s price. When a stock experiences a short squeeze, short sellers are forced to buy shares to cover their positions, leading to a rapid surge in the stock price.
At Extreme Investor Network, we’ve analyzed data from FactSet to identify potential short squeeze candidates in the market. Among them is Symbotic, a warehouse automation company with short interest at around 30% of its float. Despite a decline in its share price this year, analysts remain bullish on Symbotic, forecasting a 37.2% upside.
Electric-vehicle manufacturer Lucid is another stock with significant short interest, around 29% of its floating shares. While analysts have a muted stance on Lucid, the stock has seen a solid performance in May, climbing over 8% for the month.
Lastly, merchandise retailer Kohl’s is also flagged as a potential short-squeeze target with a short interest of nearly 34% of its float. The company is set to report its fiscal first-quarter earnings soon, with traders keeping a close eye on the results.
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