NeoVolta Soars 4.84% as Retail Investors Target Highly Shorted Stocks

On July 24, 2025, NeoVolta's stock price surged by 4.84% in pre-market trading, driven by a wave of retail investor interest targeting highly shorted stocks.

Retail investors have once again turned their attention to small-cap stocks with high short interest, reminiscent of the 2021 "meme stock" frenzy. NeoVolta, with an 81.22% short interest, has become a prime target for these investors, who are coordinating their efforts through social media platforms to drive up the stock price and trigger a short squeeze.

This renewed interest in highly shorted stocks has sparked speculation about the potential for another "meme stock" phenomenon, similar to the GameStop and AMC Entertainment Holdings Inc. frenzy of 2021. The surge in call option trading and the collective frenzy among retail investors have raised questions about the role of individual investors in the market and their ability to influence stock prices.

Analysts have issued warnings about the potential risks associated with this speculative behavior, noting that many of these companies have weak fundamentals. However, the high short interest in these stocks provides ample "fuel" for potential short squeeze rallies, as short sellers are forced to cover their positions by buying back the stock, further driving up the price.

Despite the warnings, the "meme stock" phenomenon shows no signs of abating, with retail investors continuing to drive up the prices of highly shorted stocks. The market may be attempting to replicate the classic script of individual investors metaphorically beating down short sellers, as seen with GameStop in 2021.