9 Short Squeeze Stocks That Could Take Off in November

These stocks have the right conditions to trigger short squeezes.

Short squeezes have been among the most popular and controversial topics on Wall Street in the past couple of years. In early 2021, groups of online stock traders on Reddit began orchestrating targeted buying campaigns in some of the market’s most heavily shorted stocks in an attempt to trigger short squeezes. A short squeeze is a large, short-term spike in a stock’s share price that occurs when a significant number of short sellers are forced to buy shares and exit their positions all at once. Here are nine stocks primed for the next big short squeezes, according to Ortex Analytics.

Clene Inc. (ticker: CLNN)

Clene is a clinical-stage biopharmaceutical company that specializes in developing treatments for neurodegenerative diseases. The company went public via a merger with a special-purpose acquisition company, or SPAC, on Dec. 31, 2020, at a price of about $10.82 per share. Clene’s share price dropped more than 40% on Oct. 3 after the company reported disappointing phase 2 trial data for its only clinical-stage asset in treating amyotrophic lateral sclerosis, or ALS. Clene said the company is still pursuing “multiple paths” forward, so any good news could easily ignite a short squeeze. Ortex estimates about 19% of CLNN’s float, or free-trading shares, is now held in short positions, and its $1.03 share price as of Nov. 1 could make it an attractive target for traders.

Shift Technologies Inc. (SFT)

Online used-car retailer Shift Technologies went public via a SPAC merger in October 2020. Roughly seven months later, it was back raising money yet again, selling $75 million worth of convertible notes in May 2021. In August 2022, the company reported a second-quarter net loss of $52.2 million and announced a merger with CarLotz Inc. (LOTZ), a new CEO and a new business plan that should make the company profitable by 2024. SFT stock is down nearly 85% year to date as of Nov. 1, and short sellers are seemingly skeptical of the profitability guidance and leadership change. Ortex estimates that 18% of Shift’s float is held in short positions.

Beam Global (BEEM)

Beam Global is one of many electric vehicle stocks that short sellers have successfully targeted in the last two years. Beam is a renewable energy EV charging specialist. Beam’s stock price more than doubled to as high as $75.90 in December 2020 when the company announced that Montebello, California, is installing two of Beam’s solar-powered EV charging terminals to power city electric transit vans. Short sellers have since profited on Beam stock’s slide back down to around $12.28 as of Nov. 1. Beam’s tiny float of just 8.2 million shares, the smallest of any stock on this list, suggests a short squeeze could be particularly volatile. Beam’s short interest has grown to about 21% of its float.

Beyond Meat Inc. (BYND)

Plant-based meat company Beyond Meat had a disastrous 2021, and things have gone from bad to worse in 2022. In August, the company reported a 1.6% drop in revenue, cut its full-year sales guidance and announced it was trimming its workforce. The stock is down 76.5% year to date as of Nov. 1, and short sellers smell blood in the water. Beyond Meat’s 2019 post-IPO high of $239.71 is now a distant memory. Investors were once betting on a growth stock with a massive addressable market, but short sellers see an unprofitable company with negative growth in an increasingly competitive space. Beyond Meat’s short interest is now 43% of its float, the highest short interest of any stock on this list.

NuScale Power Corp. (SMR)

The booming IPO market has dried up this year, but NuScale Power may have picked the perfect time to go public in 2022 given current energy market conditions. NuScale designs and markets small modular reactors, or SMRs, used to generate nuclear energy. Nuclear energy is controversial, but it is also a large potential source of clean energy. NuScale shares opened at $10.70 on their first day of trading in May, and the stock is up about 5.6% since that time, as of Nov. 1, amid a booming energy market. Ortex estimates about 23% of the stock’s float is held in short positions.

Cricut Inc. (CRCT)

Cricut makes smart machines used for crafting and do-it-yourself projects. The company priced its May 2021 initial public offering at $20 per share, and the stock has since lost more than half its value. In August, Cricut reported impressive 34% total user growth and 34% paid subscriber growth. However, short sellers likely focused more on the company’s 45% drop in revenue. Still, unlike many recent IPOs that short sellers have targeted, Cricut has reported 14 consecutive profitable quarters, and a rebound in revenue growth could trigger a major short squeeze. Ortex estimates about 19% of the company’s float is currently held in short positions.

UP Fintech Holding Ltd. (TIGR)

Chinese online brokerage UP Fintech went public in March 2019 at an IPO price of $8 per share. Unfortunately, Chinese regulators have cracked down on tech stocks, specifically accusing brokers like UP of illegally allowing customers in China to buy and sell shares of U.S. and Hong Kong-listed stocks. Meanwhile, U.S. regulators are also threatening to delist any Chinese stocks that do not comply with a new set of strict accounting standards. Not surprisingly, the uncertainty has sent UP shares plummeting all the way down to $3.72 as of Nov. 1. Ortex estimates about 15% of the company’s float is currently held in short positions.

Danimer Scientific Inc. (DNMR)

Danimer Scientific produces biodegradable and compostable plastics. Danimer has certainly been a popular and successful trade for short sellers up to this point. The company went public via a SPAC merger in December 2020 at a price of around $30 per share, but less than two years later it is trading at $2.80. In December 2021, Danimer celebrated its one-year anniversary on the public market by announcing plans to sell $175 million in debt, news that understandably sent the stock tumbling about 20%. In August, Danimer said it has “several significant customer product launches” coming in the fourth quarter and beyond, but short sellers are skeptical. Ortex estimates 22% of Danimer’s float is held in short positions.

Tattooed Chef Inc. (TTCF)

Tattooed Chef is a plant-based food company that went public via SPAC merger in 2020, and the company initially reported impressive growth numbers. Unfortunately, it’s struggling with profitability, and its sales growth has slowed significantly to just 15.6% in the most recent quarter. The stock is down 70% year to date as of Nov. 1, but any meaningful progress toward profitability or a rebound in growth could be enough to send short sellers running and trigger a major short squeeze. Tattooed Chef’s short interest has remained elevated in 2022 while its stock price has fallen to new all-time lows. Tattooed Chef’s short interest is now 34% of its float.

9 short squeeze stocks that could take off in November:

— Clene Inc. (CLNN)

— Shift Technologies Inc. (SFT)

— Beam Global (BEEM)

— Beyond Meat Inc. (BYND)

— NuScale Power Corp. (SMR)

— Cricut Inc. (CRCT)

— UP Fintech Holding Ltd. (TIGR)

— Danimer Scientific Inc. (DNMR)

— Tattooed Chef Inc. (TTCF)

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