Seeking a Short Squeeze: 3 Cheap Stocks With High Short Interest

"It's seldom a good idea to buy shares of a company just because you're looking for a short squeeze. Though pursuing stocks with above-average short interest could grant you a shot at outsized returns if ever share price momentum becomes too much for the shorts to handle, as they cover and run to the hills, I think investors should prioritize the quality of the underlying business first and foremost."

"Personally, I wouldn't bet against the highly-shorted name on the way down, especially as the warehouse robotics revolution continues to play out in big retail. In short, I'd much rather be long than short, given the growth potential behind its impressive tech and the potential for shorts to feel a squeeze should shares find a way to power higher a"

Buying shares solely to chase a short squeeze is seldom a good idea. Investors should prioritize the quality of the underlying business before considering short-interest dynamics. High short interest can act as a supplementary upside when a hard-hit firm appears undervalued and faces timely catalysts, such as positive earnings or progress in a strategic turnaround. Pursuing stocks with above-average short interest can deliver outsized returns if momentum forces shorts to cover, but relying on a squeeze alone is risky. Symbiotic (NASDAQ:SYM) currently exhibits over 33% of float shorted, heavy client exposure, and recent steep share declines despite growth potential.

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