Short squeezes have been among the most popular and controversial topics on Wall Street in the past couple of years. In 2021, groups of online stock traders on Reddit made headlines by orchestrating targeted buying campaigns to trigger short squeezes in some of the market’s most heavily shorted stocks. 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.
[Sign up for stock news with our Invested newsletter.]
Here are nine stocks primed for the next big short squeezes, according to Ortex Analytics:
| Stock | Estimated Short Interest Percentage of Free Float |
| EVgo Inc. (ticker: EVGO) | 31% |
| Republic First Bancorp Inc. (FRBK) | 22% |
| Microvision Inc. (MVIS) | 27% |
| Fisker Inc. (FSR) | 40% |
| Beyond Meat Inc. (BYND) | 36% |
| Shift Technologies Inc. (SFT) | 15% |
| Tattooed Chef Inc. (TTCF) | 30% |
| Cricut Inc. (CRCT) | 15% |
| Aemetis Inc. (AMTX) | 24% |
EVgo Inc. (EVGO)
EVgo is an electric vehicle
charging technology company that short sellers have targeted aggressively. EVgo went public via a special-purpose acquisition company, or SPAC, merger in July 2021, and its shares opened at around $15 following the merger. The stock peaked at $19.59 in November 2021 but has since traded all the way back down to around $4.
In June 2022, short seller Fuzzy Panda Research said EVgo shares were still overvalued, alleging problems with broken chargers, low network utilization and “questionable” corporate partners. EVgo’s short interest has since grown to 31% of its float, or free-trading shares.
Republic First Bancorp Inc. (FRBK)
Republic First Bancorp is a regional U.S. retail bank headquartered in Philadelphia. Republic First shares are down 43.7% so far in 2023 through June 1, with much of that sell-off taking place since the collapse of Silicon Valley Bank triggered a regional banking crisis and spread fears of contagion within the industry.
Deposit runs also took down Signature Bank and First Republic Bank, and investors are concerned about rising interest rates inflicting heavy losses on bank loan portfolios. Short sellers may be betting Republic First is the next domino to fall. The bank’s short interest is 22% of its float.
Microvision Inc. (MVIS)
Microvision is developing a lidar sensor for autonomous vehicles and has been a WallStreetBets favorite since early 2021. After trading as high as $28 during the peak of the Reddit trading craze in April 2021, Microvision shares have dropped all the way back down to less than $5.
The meme stock has been on a tear since early May, more than doubling in a matter of weeks. Short sellers see the company reported less than $1 million in revenue and a $19 million net loss in the first quarter. Meanwhile, the stock’s short interest is up to 27% of its float.
Fisker Inc. (FSR)
Yet another EV stock that short sellers have successfully targeted is Fisker. The company went public via SPAC merger in October 2020 at a price of around $9. After trading as high as $31.96 during the peak of the Reddit trading craze in early 2021, Fisker shares have dropped all the way back down to $6.63.
The stock took a hit in December 2022 after short seller Fuzzy Panda Research said Fisker was facing liquidity issues — claims Fisker subsequently denied. Fuzzy Panda isn’t the only short seller that could get burned by a short squeeze. Fisker’s short interest is up to 40% of its float — the highest on this list.
Beyond Meat Inc. (BYND)
Plant-based meat company Beyond Meat has had a disastrous couple of years, and things have gone from bad to worse in 2023. In October 2022, Beyond Meat announced it was cutting 19% of its workforce, and first-quarter revenue was also down 15.7%. The stock is down nearly 90% overall in the past two years, and short sellers smell blood in the water.
Beyond Meat 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 market. Beyond Meat’s short interest is now 36% of its float.
[READ: How This 25-Year-Old Makes $500k a Year With His Newsletter Business]
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 announced a merger with CarLotz, a new CEO and a new business plan that it said would make the company profitable by 2024. In May 2023, Shift told investors it is exploring “strategic alternatives” with financial and legal counsels. Short sellers are seemingly skeptical of the guidance and strategic review.
Ortex estimates 15% of Shift’s float is held in short positions.
Tattooed Chef Inc. (TTCF)
Tattooed Chef is a plant-based food company that went public via a SPAC merger in 2020, and the company initially reported impressive growth numbers. In May, the company said it is shifting its focus from growth to profitability. The stock is down 96% in the past two years, but any meaningful progress toward profitability or 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 2023 while its stock price has dropped below 60 cents. Tattooed Chef’s short interest is now 30% of its float.
Cricut Inc. (CRCT)
Cricut makes smart machines used for crafting and do-it-yourself projects. The company priced its May 2021 IPO at $20 per share, and the stock has since lost more than half its value. In May, Cricut announced impressive 19% total user growth and 17% paid subscriber growth in the first quarter. However, short sellers likely focused more on the company’s 26% drop in revenue.
Still, unlike many recent IPOs that short sellers have targeted, Cricut has reported six consecutive profitable years, and a rebound in revenue growth could trigger a major short squeeze. Ortex estimates about 15% of the company’s float is currently held in short positions.
Aemetis Inc. (AMTX)
Aemetis is a renewable fuels and biochemical company that specializes in acquiring and developing technologies to replace petroleum products. The stock has been on a wild ride in recent years, surging from under $1 per share in mid-2020 to above $27 in early 2021 before dropping back down to under $2 in early May 2023.
The stock has since more than doubled, with most of the gains coming after Aemetis reported the Environmental Protection Agency approved the company’s Biogas Services subsidiary’s renewable natural gas production facility. Short sellers aren’t buying the rally. Aemetis’ short interest is 24% of its float.
More from U.S. News
Artificial Intelligence Stocks: The 10 Best AI Companies
2023’s 10 Best-Performing Stocks
15 Best Dividend Stocks to Buy Now
9 Short Squeeze Stocks That Could Take Off in June originally appeared on usnews.com
Update 06/02/23: This story was previously published at an earlier date and has been updated with new information.
