So I was reading an article on the 5 most shorted stocks with a market cap >$2 billion. one of the things I found interesting was the 5 companies were in different industries. My thoughts were these could be a good trade if the market reverses the recent downtrend. I do NOT presently hold a position in any of these stocks but would like to hear thoughts that could be a catalyst (for the stocks). My thoughts are these could spike if the shorts decide to cover.
Upstart Holdings (UPST) 23.29% short
Shift4 Payments (FOUR) 21.40% short
WisdomTree (WT) 20.45% short
UWM Holdings (UWMC) 18.36% short
Lemonade (LMND) 16.01% short
Seeking Alpha Article – 5 Most Shorted Stocks
byu/pinprick58 instocks
Posted by pinprick58
3 Comments
Such articles are best viewed as helping you identify companies you should not under any circumstances invest in.
Could they spike if shorts cover? Yup.
Will shorts cover? Nope.
Short squeezes aren’t a common thing, they require a perfect storm of extremely high short interest (23% isn’t even close), good visibility, timing and a strong catalyst.
These stocks have none of these things.
doesn’t soundhound have a short interest of like 30% lol