As the trend in which retail traders bet on stocks based solely on social-media hype continues, several stocks with high short interest could witness a short squeeze in the coming months. VMware (NYSE:), Continental Resources (NYSE:), and Macy’s () are examples of names that possess high short interest and are being discussed on social media. Because of this, we think these stocks could witness a solid rally in the near term. Read on.The short squeeze wave, which took the stock market by storm earlier this year, drove sky-rocketing rallies by GameStop Corp . (NYSE:) and AMC Entertainment Holdings, Inc. (), among other meme stocks. The retail trading frenzy has been continuing into this summer. According to Morgan Stanley (NYSE:), retail traders account for 10% of the United States’ stock trading volume.
With improving advanced technology and access to zero-commission trading platforms, retail traders are expected to take more control of the market. They are betting on stocks that are heavily discussed on several social media platforms, such as Reddit, because of their high short interest. Benefiting from a short squeeze in these stocks is these investors’ primary goal.
VMware, Inc. (VMW), Continental Resources, Inc. (CLR), and Macy’s, Inc. (M) currently possess high short interest. While this indicates that institutional investors are bearish about them, they could get targeted by retail traders seeking to precipitate a short squeeze. So, we think it could be wise to scoop up these three stocks now.
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