Here Are the High Short Interest Stocks to Keep an Eye on in June

Key takeaways

• Short interest is when investors bet a company’s share price will decline in value
• Carvana and Beyond Meat both have the makings of a short squeeze as of last week
• C3.ai is also attracting increasing short interest

There’s money to be made in the high-stakes world of short interest and squeezes. Whether it’s driven by Reddit’s retail investors or tactical traders, when a company defies the odds and forces short sellers to cover their positions, it can send the share price into the stratosphere and some lucky investors win big. Here are the companies with a lot of short interest right now.

Short squeezes are fun to watch, but it’s all about timing if you want to participate in them. Q.ai’s Short Squeeze Kit helps to make life easier by monitoring the data across thousands of equities to see when a short squeeze might hit, then shifting the Kit’s holdings to help you benefit from the upside.

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What is short interest?

Short interest is how many shares people are betting will go in price. The more interest there is, the more people think the stock’s price will fall. Short interest is often an indicator of market sentiment.

When that bet doesn’t pay off, it can cause a short squeeze. This is when the stock’s price rises quickly and the short sellers are forced to buy it at a higher price to prevent further losses. This creates a cycle of driving up the price even more, causing some absolutely mammoth short squeezes in Wall Street’s history.

The short interest stocks in June

Carvana

We saw a Carvana mini-short squeeze at the end of last week, which caught the attention of retail investors and social media. The used car retailer posted much better than expected Q2 forecasted earnings, with short sellers soon sitting on a combined $1 billion loss.

Carvana shares have now soared over 40% in a month. Currently, the float shorted is sitting at 56.99%.

Beyond Meat

Plant-based food producer Beyond Meat had a rough time of the pandemic and ensuing economic downturn, axing nearly 20% of its staff in October and with a massive 90% share loss in the past two years. Naturally, short interest has been high for some time and is currently sitting at 46% of its float.

But Beyond Meat’s short sellers had losses of $60 million on Thursday after there was a 20% jump in the share price, setting the stock up for a potential short squeeze.

C3.ai

Not everyone is doing well from the AI revolution, with C3.ai struggling with short seller Kerrisdale Capital saying the company has “serious accounting and disclosure issues”. While the company tried to allay fears, short interest is currently around 35.7% of its float.

C3.ai recently reported a fiscal-year outlook that underwhelmed analysts, piling on short interest pressure. But the stock is up 86% in the last month thanks to the Nvidia halo effect, with many short sellers already losing out.

The bottom line

Short squeezes are the stuff of legend when they go right. But it’s almost impossible to predict when it might happen, so using AI to help with the process is the safest way to operate in a high-risk environment.

Q.ai’s Short Squeeze Kit can help you generate returns without trying to guess the market. It sifts through massive amounts of data to determine which companies have a lot of short interest, realigning the Kit’s holdings as needed to help you capitalize on the next big squeeze.

Download Q.ai today for access to AI-powered investment strategies.