Investing in Stocks with Significant Short Interest
When it comes to investing, stocks with high short interest can be particularly intriguing. These stocks have the potential for a sudden surge in value, known as a “short squeeze.” This occurs when traders rush to cover their short positions, driving up demand and prices. In this article, we will explore two stocks that have caught the attention of investors.
Marathon Digital (NASDAQ: MARA)
Marathon Digital is a leading crypto mining company that was founded in 2010. Despite hitting an all-time high of over $154 in 2014 during the Bitcoin bull market, the stock is currently trading 95% lower than its peak. It is also one of the most shorted stocks in the US, with over 31% of its float being shorted by investors.
However, analysts remain optimistic about Marathon Digital’s prospects. The average price target set by five analysts for the next 12 months is $15.4, which is over 81% higher than its current price. The stock also has an average analyst rating of ‘Buy’ on TradingView.
If these predictions come true and Marathon Digital experiences a significant increase in value, it could lead to a potential short squeeze and substantial returns for investors.
Enovix Corporation (NASDAQ: ENVX)
Enovix Corporation is a silicon battery maker based in California. The company specializes in designing and producing advanced silicon-anode lithium-ion batteries using a unique three-dimensional cell architecture. Currently, around 30.95% of Enovix’s float is shorted by investors.
Despite modest returns so far this year, analysts are bullish on ENVX. The average 12-month price target for the stock is $31.42, indicating a potential upside of over 150% from its current market price.
Hot Take: Potential for Short Squeezes in Marathon Digital and Enovix Corporation
Both Marathon Digital and Enovix Corporation have attracted significant short interest from investors. While their stock prices may currently be lower than their peaks, analysts are optimistic about their future prospects. If these stocks experience a surge in value as predicted, it could lead to a potential short squeeze and substantial returns for investors. Keep an eye on these stocks as they could offer exciting opportunities in the market.
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