“Game On!!” Well kinda, sorta. I’m referring to the continued epic David-versus-Goliath style battle on Wall Street in some of the market’s most heavily shorted stocks. Beyond today’s sideshow and for investors looking for the next big thing with more sustainable staying power, the following most-shorted stocks are offering attractive opportunities for bullish investors.
The nightly news media circus has pulled its cameras and dutifully moved coverage back to how Main Street is faring beyond Wall Street as the nation passes the one-year anniversary of the novel coronavirus outbreak being declared a pandemic. And rightfully so. But that doesn’t take away from the continued and breathtaking resurrection in some of the market’s most-shorted stocks.
Elon Musk’s “Gamestonk!!” has continued to reign supreme with Robinhood’s and Reddit’s WallStreetBets band of merry marauders. Shares are up about 100% this week and adding to this year’s stunning (and stinging) return of 1,370%. GME stock also continues to maintain favor with shorts. More than 40% of the float is still wagered against a stock now valued near $20 billion and what’s increasingly a poor bet against a company increasingly with the resources to pivot successfully. But enough about GME, right?
The so-called smart and larger money has proven itself wrong on more than one occasion outside and well before Gamestonk ever became a stock meme. Think Amazon (NASDAQ:AMZN). Or Netflix (NASDAQ:NFLX). Back in the day those two giants were among the market’s most shorted stocks. And more recently, Tesla (NASDAQ:TSLA), which cost bears nearly $40 billion this past year.
Given historical failed lessons are bound to repeat, let’s revisit a couple of today’s most-shorted stocks. Bottom-line and in light of the Wall Street’s more cautious ways of late, well other than GME stock, now more than ever these market disruptors are offering growth at a reasonable price, off and on the price chart.