Short squeeze stocks are the talk of Wall Street at the moment. As the banking crisis continues to unfold, some investors are seeking refuge by betting against many well-known losers — and reaping tremendous gains.
Indeed, the short interest — or the number of shares sold short relative to the wider stock base — on a number of well-known companies has risen rapidly. Reasonably so, at a time when the winners are struggling to turn a windfall and losers are struggling to stay listed, it should be a no brainer that investors are choosing the latter.
So, which short squeeze stocks have been taking off lately?
5 Short Squeeze Stocks Wall Street Can’t Get Enough Of
- Bed Bath and Beyond (NASDAQ:BBBY) sits at the top of the list, likely to no surprise. The company has long been a short seller favorite. Bed Bath has been on a downward trajectory for the better part of the last decade and recently, its short interest has skyrocketed. Currently, the struggling retailer has a short interest of 72.23%. That said, last month BBBY managed to raise $1 billion in an effort to fend off bankruptcy.
- Next up is Silvergate Capital (NYSE:SI). Silvergate has lost almost 90% of its value since the start of the year, leaving traditional investors in the dust. Currently, the California-based regional bank has a short interest of 71.64%.
- Design Therapeutics (NASDAQ:DSGN) is third on the list, with a short interest of 41.23%. While not as infamous as short squeeze stocks like Silvergate or Bed Bath, the biopharmaceutical company has certainly earned its spot on the list. DSGN stock is down more than 40% year-to-date (YTD).
- Novavax (NASDAQ:NVAX) lands in fourth place on the list. The biotech company was once a forerunner in the Covid-19 vaccine race. Unfortunately, though, its business has largely fallen by the wayside. NVAX has a short interest of 38.70%.
- Last up on this list is plant-based food company Tattooed Chef (NASDAQ:TTCF), the only name on this list that’s up on the year. Currently, shares are up about 4% YTD. Despite this, TTCF has a notable short interest of 35.04%, likely attributable to its most recent earnings miss of -46 cents per share.
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On the date of publication, Shrey Dua did not hold (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.