In recent years, short squeezes have emerged as a compelling yet controversial phenomenon on Wall Street.
Notably, 2021 witnessed the spotlight shifting to online stock traders who strategically engineered targeted buying campaigns, triggering short squeezes in heavily shorted stocks.
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.
Picks for you
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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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
