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Today’s biggest short positions on Wall Street, featuring the new GameStop stock.



The recent meme stock rally may have lost some steam, but familiar names from the frenzy are once again among the most shorted stocks in the market. GameStop, one of the key players in the meme stock craze, has reemerged as a short-interest favorite with short interest jumping 6% to over 68 million shares as of May 15, representing over 25% of its float. This resurgence in interest came as “Roaring Kitty,” the retail investor who sparked the short squeeze in 2021, posted online for the first time in around three years, causing GameStop shares to soar by over 92% for the month.

Short selling is a high-risk strategy used by hedge funds, and occasionally retail investors, to speculate on a fall in share price. It involves borrowing shares and selling them to repurchase later at a lower price, with traders making a profit from the price difference. A short squeeze happens when a stock price surges, forcing investors shorting the stock to buy shares to cover their shorts and cut their losses. CNBC Pro used FactSet data to identify companies on the New York Stock Exchange and Nasdaq with a short interest as a percent of float at 25% or more and a market cap of at least $1 billion.

Symbotic, a warehouse automation company, has a short interest as a percent of float at around 30%. While the stock has declined nearly 20% year to date, it has climbed 6.7% month to date. Analysts remain bullish on Symbotic, with the majority rating it a buy or strong buy and forecasting a 37.2% upside. Electric-vehicle manufacturer Lucid also made the list, with roughly 29% of its floating shares sold short. Despite this, Lucid shares have climbed more than 8% in May and analysts hold a muted stance on the stock, with around 70% giving it a hold rating.

Another potential short-squeeze target is merchandise retailer Kohl’s, with its short interest as a percent of float nearly reaching 34%. The company is set to report its fiscal first-quarter earnings soon, following disappointment in its previous quarterly earnings announcement. Although the stock is down 7% quarter to date, it has surged 13.1% over the past month. These companies are among those likely to attract attention from investors looking to capitalize on potential short squeezes in the market.

In conclusion, the meme stock saga may have quieted down, but the interest in shorting remains high for certain stocks like GameStop, Symbotic, Lucid, and Kohl’s. With short interest as a percentage of float at 25% or more for these companies, they are potential short-squeeze targets for investors. Traders will be closely monitoring these stocks as they navigate through market volatility and sentiment changes to capitalize on potential opportunities for profit. It is essential for investors to stay informed and exercise caution when engaging in trading strategies involving short selling and short squeezes.

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