In recent years, short squeezes have emerged as a compelling yet controversial phenomenon on Wall Street.
This market dynamic leads to sudden and substantial spikes in a stock’s share price as a multitude of short sellers are compelled to buy shares, hastening their exit from positions.
Blink Charging (NASDAQ: BLNK)
Blink Charging (NASDAQ: BLNK), a company that develops electric vehicle (EV) charging solutions, has seen its stock price plummet more than 70% in 2023.
The significant decline was primarily driven by intensifying industry competition and rapid cash burn, implying equity dilution.
However, BLNK is a potential opportunity for traders if the stars align. The stock is significantly oversold and has a considerable short interest of more than 27%, according to MarketBeat data.
Meanwhile, the analysts remain largely bullish on the EV stock. Based on 9 analyst coverages released in the past three months, the average 12-month price target on the stock is $10. That is 225% higher than BLNK’s current price.
Simultaneously, BLNK also has a consensus analyst rating of a ‘Buy,’ based on 3 ‘Strong Buy’ and 7 ‘Hold’ recommendations issued by analysts in the past three months.
With Blink’s stock currently residing in the oversold territory and analysts expressing optimism about the company, BLNK appears in a position for a potential short squeeze.
Bowlero (NYSE: BOWL)
Bowlero Corporation (NYSE: BOWL) is the largest ten-pin bowling center operator on the globe, with more than 325 centers.
The company made its public debut in December 2021 via a SPAC merger. Since then, it has garnered significant attention from short traders, however, its price has held up relatively well regardless.
Per MarketBeat, around 20.7% of BOWL’s float is being shorted by the market.
Akin to Blink Charging, analysts have been largely positive in their coverages of BOWL, resulting in an average 12-month price target of $18.25, implying a possible upside of more than 78%.
Over the past three months, 10 financial experts issued a rating of ‘Strong Buy’ for BOWL, suggesting significant confidence in the company’s stock market prospects. This, coupled with a robust short interest, suggests noteworthy potential for a strong short squeeze at some point in the future for BOWL.
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