Potential short squeeze plays gained steam in 2021 and continued through 2022, with new traders looking for the next huge move.
High short interest and a high cost to borrow are among the common traits that could lead to a short squeeze.
Here’s a look at the top five short squeeze candidates this week based on the Fintel short squeeze leaderboard and some other stocks to watch moving up the list.
- Kala Pharmaceuticals KALA: The company tops the leaderboard moving up 15 places from the prior week. Data shows 36.3% of the float short and a cost to borrow of 378.2%. Kala recently saw shares soar after announcing FDA acceptance of its KPI-012 for an investigational new drug application. The product is the company’s lead candidate and is targeting the treatment of corneal epithelial defect.
- Getty Images Holdings GETY: The content creator and image marketplace returns to the leaderboard, moving up three positions. Since going public via SPAC merger, the stock has been a frequent short squeeze candidate. Data shows 99.9% of the float short and a cost to borrow of 150%.
- PaxMedica Inc PXMD: The clinical-stage biopharmaceutical company remains on the leaderboard, but falls two positions from last week. Data shows 30.5% of the float short and a cost to borrow of 660%. The short percentage is up from last week and the cost to borrow is down. The cost to borrow remains the highest of the stocks on the leaderboard from Fintel.
- Avalon GloboCare Corp ALBT: The healthcare management company ranks fourth for the week. Data shows 18.3% of the float short and a cost to borrow of 22.2%.
- MicroStrategy Inc MSTR: The software company and Bitcoin BTC/USD holder ranks fifth on the leaderboard for the week. The stock is no stranger to the leaderboard with companies holding Bitcoin or involved in the cryptocurrency sector often the target of short sellers. Data shows 36.5% of the float short and a cost to borrow of 40.6%.
Stocks to Watch
Ranking just outside the top five short squeeze candidates list by Fintel are several companies seeking big jumps in their place on the leaderboard that investors may want to pay attention to.
- Blue Apron Holdings APRN: Meal-kit delivery company has made frequent appearances on the leaderboard and ranks sixth for the week with 45.3% of the float short and a cost to borrow of 20%. The stock moved up 23 places on the leaderboard from last week.
- Atour Lifestyle Holdings ATAT: Chinese hotel company that went public in November ranks seventh on the leaderboard, moving up 70 places. Data shows 13.2% of the float short and a cost to borrow of 48.8%.
- Soleno Therapeutics SLNO: Clinical stage biopharmaceutical ranks eighth on the leaderboard, moving up 423 positions, one of the biggest jumps of the week. Data shows 10.9% of the float short and a cost to borrow of 107.9%.
- Indonesia Energy INDO: Oil company that has previously topped the short squeeze leaderboard gets back into the top ten, moving up three positions. Data shows 10% of the float short and a cost to borrow of 142%.
- Applovin Corp APP: Mobile technology company Applovin continues to move up the leaderboard and rank outside the top five candidates. The company ranks 15th on the leaderboard, moving up 56 positions. Data shows 375.1% of the float short and a cost to borrow of 1.6%.
The short squeeze stocks to watch list is published weekly. Benzinga also recently introduced its Stock Whisper Index, which provides five stocks seeing increased interest from investors.