Short sellers targeting Tesla (NASDAQ: TSLA) and MicroStrategy (NASDAQ: MSTR) have faced significant losses as these stocks surged to new highs in 2024. However, other stocks with high short interest and volatile trading conditions could present profitable short-squeeze scenarios in the coming year. Here’s a closer look at three stocks that analysts and traders are eyeing for their potential to generate short-selling profits.
1. Marathon Digital Holdings (NASDAQ: MARA)
Overview
- Sector: Bitcoin Mining
- Current Price: $19.95
- Short Interest: 20%
MARA, one of the largest Bitcoin mining companies, has faced substantial short-selling activity, driven by the inherent volatility of Bitcoin itself. The company holds 40,435 BTC, bolstered by a $1.1 billion acquisition via convertible notes. However, its high operating costs and dependence on Bitcoin’s price trajectory have made it a target for speculators.
Analyst View
- Median Price Target: $27.50
- Low Price Target: $23.00
MARA’s valuation reflects optimism for Bitcoin, but further market volatility could heighten its short interest. With a P/E ratio of 39, analysts remain cautious about MARA’s long-term sustainability.
2. Symbotic Inc. (NASDAQ: SYM)
Overview
- Sector: AI-Powered Logistics and Automation
- Current Price: $25.20
- Short Interest: Nearly 40%
SYM’s volatile performance, from its yearly low of $17 in September to a rally near $40 in November, has been a rollercoaster for investors. Its valuation has been contentious, leading to a securities class action lawsuit regarding its financial reporting. Adding to the uncertainty, the company delayed its Form 10-K filing for FY24 but recently acquired OhmniLabs, enhancing its robotics and machine vision capabilities.
Analyst View
If the Trump administration pushes supply chain modernization, Symbotic could regain momentum, potentially revisiting its $50+ highs from 2023. However, the current mix of bullish and bearish developments makes SYM a speculative play for short sellers.
3. C3.ai (NASDAQ: AI)
Overview
- Sector: Enterprise AI Applications
- Current Price: $35.82
- Short Interest: 19%
C3.ai has been a focal point for traders betting on the AI sector’s potential. While its stock has risen 24% year-to-date, the company’s financial performance remains a concern. Despite a 29% YoY revenue increase to $94.3 million and strong subscription growth (86% of revenue), C3.ai reported a quarterly net loss of $65.97 million.
Analyst View
- Median Price Target: $36.15
The company’s cash reserves of $730.4 million offer some cushion, but profitability remains elusive, fueling short-selling activity. Analysts suggest the stock could see further volatility in 2025.
As 2025 approaches, stocks like MARA, SYM, and AI represent high-risk, high-reward opportunities for traders seeking short-squeeze scenarios. Factors such as high short interest, low float, and sector-specific volatility make these stocks prime candidates for speculative trading. However, the unpredictable macroeconomic environment, influenced by Federal Reserve policy and potential regulatory changes, adds an additional layer of complexity. Traders are advised to stay vigilant and leverage platforms like TradeZero for real-time data and optimized execution strategies.
This story was originally featured on Tokenist.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
