Can you provide examples of stocks with high short interest that have shown significant price movements?
7/31/2025 12:12am
Here are some examples of stocks with high short interest that have experienced significant price movements:
1. **GameStop (GME)**: GameStop's short interest was extremely high, with a short interest ratio of 140% at its peak, which implied a large number of illegal naked shorts. The stock's price surged from $4.75 on January 11, 2021, to a high of $120.75 on January 25, 2021, after a short squeeze triggered by retail investor enthusiasm and social media-driven collective action.
2. **AMC Entertainment (NYSE: AMC)**: AMC also experienced a significant short squeeze, with its stock price rising from $9.20 on March 24, 2021, to $20.46 on April 14, 2021, after retail investors pushed the stock's price higher.
3. **Tesla (TSLA)**: Tesla has consistently been a target for short sellers due to its high valuation and growth prospects. In 2019, Tesla's stock price experienced a significant drop, which was partly attributed to increased short interest.
4. **WeWork (WE)**: WeWork's initial public offering (IPO) in 2019 was heavily shorted, with some analysts estimating that over 20% of the shares outstanding were sold short. The stock's price experienced significant volatility and eventually declined from its IPO price of $17 to less than $10.
5. **Berkshire Hathaway (BRK.A)**: Berkshire Hathaway has been a popular target for short sellers due to its high valuation and concentrated portfolio of stocks. In 2019, the stock's price experienced a significant drop, which was partly attributed to increased short interest.
These examples illustrate how high short interest can lead to significant price movements, including short squeezes, when combined with other factors such as retail investor enthusiasm, company-specific news, or broader market events.