A couple days ago, hedge fund manager Will Meade came up with an interesting idea. He hopped on Twitter to discuss why he thinks ChargePoint (NYSE:CHPT) could be the next GameStop (NYSE:GME). The tweets have many investors sitting up in their seats. As one of the most shorted stocks, Meade’s case does hold water. And with retail investors chasing the success of GME through stocks like AMC (NYSE:AMC), there’s lots of chatter around which stock could have the same squeeze potential as the video game retailer.
We can take a look at the most shorted stocks right now to see some potential short-squeeze candidates. One of these stocks is Second Sight Medical Products (NASDAQ:EYES). The eye health technology company has been called overvalued before, after a regulatory approval sent EYES stock sky high. Now, the company is short interest of 49.4%. While short-sellers predict EYES to drop off in value, Second Sight has some real fans. And with news that the company has made two promising new additions to its board of directors, sentiment could turn bullish.
Another short squeeze candidate is Blink Charging (NASDAQ:BLNK). With a 36.9% short interest, many are predicting the company’s failure. However, it has a dedicated backing of retail fans, including some r/WallStreetBets users. The company has actually seen some short squeeze activity in the last two days already, providing 13% gains on Thursday.
Most Shorted Stocks: Investors Search for Squeeze Candidates
Discovery (NASDAQ:DISCA) is in a volatile state. The company was among those caught up in the Archegos Capital Management fallout. Now, it seems investors are looking at DISCA stock for a short squeeze. It currently has 29.67% of its float sold short, and as a player in the huge streaming industry, there is consumer interest in what it offers.
Finally, Clovis Oncology (NASDAQ:CLVS) is a candidate for a GME-esque short squeeze. The oncology outfit has made promising news recently regarding its Rubraca trials. The company is hoping to get a product to market soon to help treat late-stage ovarian cancer patients, and its clinical trials are suggesting the launch could be soon. Still, CLVS stock is being bet against, with 33.85% of its float shorted. With the positive news about the Rubraca tests, as well as speculation of an acquisition in 2021, the stock seems like a prime candidate for a short squeeze.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article.