In fact, at the time of writing, investors in these three stocks have seen gains of between 10% and 13%.
Not bad, indeed.
There continues to be a surge in interest in these stocks on social media platforms. Retail investors perusing popular forums such as r/WallStreetBets are continuing to voice their support for these names — and voicing derision for their detractors. Any stock with significant short interest is being targeted as a means of fighting back against short-sellers and hedge funds.
Investors Targeting Short Squeeze Stocks Once Again
A resumption of the mania that played out in late-2020 and early 2021 appears to be unfolding. Whatever the driver of this mad dash for speculative assets is, we’re seeing some heavy buying unfold today.
It appears each of the aforementioned group has the characteristics those looking to squeeze short sellers like to see. Indeed, PLTR stock is one with a relatively high short volume ratio. For Palantir, a 19% short volume ratio suggests investors are broadly bearish on this stock, and there’s plenty of money betting against it. That’s fodder enough for the army of retail investors to jump aboard.
In the case of MVIS stock and SKLZ stock, a short volume ratio of 27% and 18% suggest similarly bearish sentiment on the street. These stocks have much lower short volume ratios than others targeted by these social media-savvy investors. That said, any ratio above 10% appears to be enough to entice such investors to attempt a squeeze right now.
How this will all play out remains to be seen. For now, these stocks certainly represent an entertaining phenomenon to watch from the sidelines.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.