In this article, we will discuss the 12 Most Shorted Stocks in 2025.
Reuters reported that President Trump’s tariffs have impacted the broader stock markets, weighing on investors’ sentiments, as worries related to the economic slowdown drove a market sell-off which wiped out ~$4 trillion from the S&P 500’s peak last month, when the markets cheered Trump’s agenda. New Trump policies have resulted in increased uncertainty for businesses, consumers, and investors.
Average Short Interest Saw a Decline
Reuters, while highlighting the comments made by Peter Orszag (CEO of Lazard), mentioned that the uncertainty which is created by tariff wars regarding Canada, Mexico and Europe continues to prompt the top executives to reconsider the forward-looking strategies. Furthermore, while the tensions with China remain understandable, investors are confused with worries related to Canada, Mexico, and Europe. If this doesn’t get resolved over the next month or so, there can be real damage to the broader economic prospects of the US and M&A activity, says Orszag.
As per S&P Global’s long/short report (February 2025) dated February 14, the average short interest throughout US equities fell to 76 basis points over the month. However, short interest increased throughout several sectors during the period. That being said, Consumer Durables saw a 5-bps rise and REITs encountered a 4-bps increase. Notably, the largest decreases were seen throughout the Household and Personal Products sector (-7 bps), and the Consumer Services (-6 bps) sectors.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
Trends in US Short Selling
The US markets have reversed their January rally with a weak February, says Ihor Dusaniwsky (Managing Director of Predictive Analytics). On February 28, Dusaniwsky stated that markets are down for the year, with the Nasdaq index seeing the brunt of the sell-off. The US short sellers were down $45.8 billion (3.42%) in January mark-to-market losses. Notably, two-thirds of every dollar shorted in January remained unprofitable and only 33% were profitable. With markets trending downward, there has been an increase in short selling throughout most of the sectors in the US/Canadian markets, says Dusaniwsky. If the weakness in the market continues, there can be increased short selling.
Amidst these trends, let us now have a look at the 12 Most Shorted Stocks in 2025.
A portfolio manager analyzing a stock chart, seeking to find the right investments.
Our Methodology
To list the 12 Most Shorted Stocks in 2025, we used a screener and shortlisted the most shorted stocks. Next, we mentioned the hedge fund sentiment around each stock. Finally, the stocks are arranged in ascending order of their hedge fund holdings, as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12 Most Shorted Stocks in 2025
12. FuelCell Energy, Inc. (NASDAQ:FCEL)
Number of Hedge Fund Holders: 8
Short % of Shares Outstanding (as of February 28): ~22.9%
FuelCell Energy, Inc. (NASDAQ:FCEL) is engaged in manufacturing and selling stationary fuel cell and electrolysis platforms which decarbonize power and produce hydrogen. Analyst Jeff Osborne from TD Cowen maintained a “Hold” rating on the company’s stock, maintaining the price objective of $12.00. The rating is backed by a combination of factors, which include FuelCell Energy, Inc. (NASDAQ:FCEL)’s expected revenue growth and strategic partnerships, balanced against the financial challenges. The company anticipates a strong revenue boost in FY25, mainly because of GEE module shipments and contributions from the partnership with Diversified Energy, which is an important step in the data center power market.
Furthermore, FuelCell Energy, Inc. (NASDAQ:FCEL) narrowed its operating losses via cost reductions, and its backlog has expanded, hinting at the potential future growth. The company’s loss from operations came in at $(32.9) million in Q1 2025 as compared to $(42.5) million in Q1 2024. Elsewhere, KeyBanc Capital Markets maintained a “Sector Weight” rating on FuelCell Energy, Inc. (NASDAQ:FCEL)’s stock. As per the firm, FuelCell Energy, Inc. (NASDAQ:FCEL)’s effective expense management, higher product orders, and strict capital discipline can support it moving forward. The company’s emphasis on strategic partnerships and cost efficiency measures are some of the critical elements in its approach to achieve growth and financial stability.
11. Aehr Test Systems, Inc. (NASDAQ:AEHR)
Number of Hedge Fund Holders: 15
Short % of Shares Outstanding (as of February 28): ~24.1%
Aehr Test Systems, Inc. (NASDAQ:AEHR) specializes in semiconductor test and burn-in equipment, mainly for silicon carbide power semiconductors as well as memory devices. The company’s products support manufacturers in spotting defects and improve the reliability of semiconductors, which are utilized in EVs, data centers, 5G infrastructure, and industrial applications. Its Q2 2025 report consisted of key highlights, including the strategic expansion into AI processor and gallium nitride (GaN) markets. The company has secured the first AI processor customer for wafer level burn-in, using the new high-power FOX-XPTM solution for wafer level production test and burn-in of AI processors. Furthermore, Aehr Test Systems, Inc. (NASDAQ:AEHR)’s management is optimistic regarding the growth opportunities, thanks to advancements in AI, GaN, and data storage markets.
Aehr Test Systems, Inc. (NASDAQ:AEHR) also continues to expand its presence in the silicon carbide power semiconductor market, which is a critical sector for power conversion for EV traction inverters, charging infrastructure, and several industrial, data center, and infrastructure applications. The company remains well-placed in this market given its large customer base. Also, Aehr Test Systems, Inc. (NASDAQ:AEHR) is currently engaged in benchmarking efforts with multiple potential new silicon carbide customers globally, including in China. The company can capitalize on the higher demand for semiconductor reliability throughout various industries. Given its strong customer engagements and innovative solutions, it can achieve sustainable growth.
10. Arbor Realty Trust, Inc. (NYSE:ABR)
Number of Hedge Fund Holders: 18
Short % of Shares Outstanding (as of February 28): ~33.2%
Arbor Realty Trust, Inc. (NYSE:ABR) makes investment across the diversified portfolio of structured finance assets in the multifamily, single-family rental, and commercial real estate markets. The potential rate cuts by the US Fed can significantly benefit the company’s business, mainly in its agency lending segment. Reduced interest rates result in stimulating higher demand for real estate financing, as borrowers tend to seek advantage of more favorable terms. In the agency lending space, in which Arbor Realty Trust, Inc. (NYSE:ABR) has a robust presence, reduced rates can fuel a surge in refinancing activity and new loan originations.
This can lead to growth in its servicing portfolio. An expansion of the portfolio can offer Arbor Realty Trust, Inc. (NYSE:ABR) with a larger base of recurring revenue, mitigating the challenges in other segments. Furthermore, reduced rates can reignite activity in the bridge loan market. As property values stabilize or increase amidst the lower-rate environment, borrowers can be focused on pursuing value-add opportunities or new acquisitions, fueling demand for bridge financing. Arbor Realty Trust, Inc. (NYSE:ABR)’s fee-based servicing portfolio sat at $33.47 billion at December 31, 2024.
9. SoundHound AI, Inc. (NASDAQ:SOUN)
Number of Hedge Fund Holders: 21
Short % of Shares Outstanding (as of February 28): ~30.4%
SoundHound AI, Inc. (NASDAQ:SOUN) is engaged in developing independent voice AI solutions that enable businesses across automotive, TV, and IoT, and to customer service industries to provide high-quality conversational experiences to their customers. H.C. Wainwright analyst Scott Buck reaffirmed a “Buy” rating on the company’s stock with a steady price target of $26.00. SoundHound AI, Inc. (NASDAQ:SOUN) raised its FY 2025 revenue outlook to $157 million – $177 million. This upward revision is considered a positive sign by H.C. Wainwright. The firm believes that the revenue range might tighten towards the higher end as 2025 progresses. The H2 2025 is projected to be stronger because of seasonal factors and its efforts in cross-selling and upselling.
As per the analyst, SoundHound AI, Inc. (NASDAQ:SOUN)’s financial position seems to be strong. Its total cash and cash equivalents came in at $198 million at December 31, 2024, with no outstanding debt. This provides the flexibility to focus on organic growth initiatives or consider M&As. Notably, 2024 was a breakthrough year for SoundHound AI, Inc. (NASDAQ:SOUN). It improved its leadership position in voice and conversational AI with the help of major customer wins, expanded partnerships, groundbreaking generative AI innovation, and strategic acquisitions.
8. MARA Holdings, Inc. (NASDAQ:MARA)
Number of Hedge Fund Holders: 21
Short % of Shares Outstanding (as of February 28): ~24.5%
MARA Holdings, Inc. (NASDAQ:MARA) operates as a digital asset technology company. Rosenblatt Securities initiated coverage on the company’s stock with a “Buy” rating and a price objective of $19.00. The analysts at the firm lauded the company’s position as a market leader among public cryptocurrency miners, highlighting its industry-leading scale and healthy market share. Additionally, the firm has also highlighted MARA Holdings, Inc. (NASDAQ:MARA)’s unmatched technological infrastructure. Rosenblatt justifies the premium valuation of MARA Holdings, Inc. (NASDAQ:MARA), considering its significant Bitcoin holdings. The analysts believe that the company’s assets and strategic advantages place it well for future growth in the cryptocurrency mining sector.
As of February 28, 2025, the company held a total of 46,374 BTC. MARA Holdings, Inc. (NASDAQ:MARA) established the leadership in bitcoin mining via an asset-light model, and has transformed it into a vertically integrated energy and infrastructure company in 2024. Furthermore, in 2025, the company remains focused on being the dominant player in bitcoin mining while enhancing its footprint in energy generation. In conjunction with its emerging technology business, MARA Holdings, Inc. (NASDAQ:MARA) continues to make R&D investments to establish its presence in AI and adjacent markets, which can create additional revenue opportunities.
7. Lemonade, Inc. (NYSE:LMND)
Number of Hedge Fund Holders: 25
Short % of Shares Outstanding (as of February 28): ~22.3%
Lemonade, Inc. (NYSE:LMND) provides renters, homeowners, car, pet, and life insurance. The company’s innovative use of AI remains critical to its business model and potential for long-term success. Its proprietary AI technology platform is leveraged throughout various operations, such as customer acquisition and service, underwriting, and claims processing. Lemonade, Inc. (NYSE:LMND)’s AI-powered chatbots remain critical to customer interactions. The company’s AI-driven systems allow it to settle claims quickly.
Lemonade, Inc. (NYSE:LMND) uses advanced telematics, mainly for its car insurance product, in a bid to collect data and allow precision pricing and underwriting. Therefore, the combination of behavioral economics and AI is implemented to improve risk assessment, and reduce fraudulent claims. The impact of technology-driven approach can continue to support Lemonade, Inc. (NYSE:LMND)’s operational efficiency. During 2024, the company more than doubled its growth investment, from $55 million in 2023 to $122 million in 2024. It remains focused on marketing efficiency. While its channel diversification and brand investment managed to expand its reach, Lemonade, Inc. (NYSE:LMND)’s LTV AI model, which predicts lifetime value for each potential customer, enables it to allocate each dollar of investment with pinpoint precision.
6. CRISPR Therapeutics AG (NASDAQ:CRSP)
Number of Hedge Fund Holders: 27
Short % of Shares Outstanding (as of February 28): ~24.2%
CRISPR Therapeutics AG (NASDAQ:CRSP) is focused on creating transformative gene-based medicines for serious human diseases. Kostas Biliouris from BMO Capital maintained a “Buy” rating on the company’s stock with a price objective of $97.00. The analyst’s rating is backed by a combination of factors demonstrating the company’s promising pipeline and strategic positioning. Apart from the continued launch progress of CASGEVY, CRISPR Therapeutics AG (NASDAQ:CRSP) anticipates numerous key milestones across its pipeline, which include updates on its lead “in vivo,” cardiovascular programs in H1 2025.
Furthermore, the upcoming clinical data from CRISPR Therapeutics AG (NASDAQ:CRSP)’s “in vivo” cardiovascular programs, CTX310 and CTX320, can potentially fuel investor sentiment and provide substantial upside. With cash, cash equivalents, and marketable securities sitting at $1,903.8 million as of December 31, 2024, CRISPR Therapeutics AG (NASDAQ:CRSP) remains well-placed to navigate the tough biotech environment and capitalize on strategic opportunities. Furthermore, the development of CTX112 and CTX131 improves its competitive edge, making it an attractive investment opportunity, says Biliouris. Due to the company’s strong cash position, it can continue investing significantly in its R&D efforts, allowing the advancement of multiple pipeline candidates simultaneously. Furthermore, it can pursue strategic acquisitions or partnerships, enhancing the technology platform and expanding its pipeline.
5. Viasat, Inc. (NASDAQ:VSAT)
Number of Hedge Fund Holders: 29
Short % of Shares Outstanding (as of February 28): ~27.3%
Viasat, Inc. (NASDAQ:VSAT) offers broadband and communications products and services. Analyst Ryan Koontz from Needham maintained a “Buy” rating on the company’s stock, maintaining the price objective of $19.00. The analyst’s rating is backed by the company’s strong financial performance in the recent quarter, with its revenue and adjusted EBITDA figures meeting or surpassing expectations. In Q3 2025, Viasat, Inc. (NASDAQ:VSAT)’s revenue came in at $1.1 billion, while adjusted EBITDA sat at $393 million.
The company’s guidance for the rest of the year remains optimistic, with anticipation of continued revenue growth and modest growth in adjusted EBITDA. Viasat, Inc. (NASDAQ:VSAT) remains focused on capital efficiency, debt reduction, and cash generation. The company has maintained its FY25 revenue and adjusted EBITDA outlook, implying its strong results in the first 3 quarters including in its aviation and defense orderbooks, and confidence in the competitive position demonstrated by strong awards. Notably, awards for Q3 2025 came in at $1.1 billion. For FY 2025, Viasat, Inc. (NASDAQ:VSAT)’s growth in adjusted EBITDA is expected to be aided by healthy revenue flow through DAT licensing agreements and Communication Services. Overall, the company expects to continue to be successful in capturing the share of large and growing markets and remain focused on improving operational and capital productivity.
4. SolarEdge Technologies, Inc. (NASDAQ:SEDG)
Number of Hedge Fund Holders: 30
Short % of Shares Outstanding (as of February 28): ~37.1%
SolarEdge Technologies, Inc. (NASDAQ:SEDG) is engaged in designing, developing, manufacturing, and selling direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations. JPMorgan analyst Mark Strouse upped the company’s price target to $24 from $19, keeping an “Overweight” rating. As per the analyst, the company reported mixed Q4 results, but its strong FCF is expected to improve the investor sentiment. Notably, in Q4 2024, its free cash flow came in at $25.5 million as compared to the FCF deficit of $136.7 in the prior year. The return to positive FCF generation in Q4 2024 is a solid first step, and SolarEdge Technologies, Inc. (NASDAQ:SEDG) expects to be FCF positive in Q1 2025 and for FY 2025.
Notably, JPMorgan has cited higher earnings estimates and the company’s improved FCF helping investor sentiment for the target increase. Elsewhere, Morgan Stanley analyst Andrew Percoco upped SolarEdge Technologies, Inc. (NASDAQ:SEDG)’s stock to a “Hold” rating, setting a price objective of $18.00. Amidst challenges, the company’s Q1 2025 guidance seems to be more favorable than expected, mainly attributed to safe harboring activities. SolarEdge Technologies, Inc. (NASDAQ:SEDG)’s improved strategic direction also alleviated some liquidity worries by enhancing FCF visibility.
3. Hims & Hers Health, Inc. (NYSE:HIMS)
Number of Hedge Fund Holders: 38
Short % of Shares Outstanding (as of February 28): ~23.3%
Hims & Hers Health, Inc. (NYSE:HIMS) operates a telehealth platform, connecting consumers to licensed healthcare professionals. Analyst Craig Hettenbach from Morgan Stanley gave a “Hold” rating, setting a price objective of $60.00. The company has been showcasing a differentiated and scalable platform, increased gross margins, and strong leadership, which are positive indicators. Furthermore, the analyst’s rating demonstrates a disciplined investment approach, acknowledging Hims & Hers Health, Inc. (NYSE:HIMS)’s solid business momentum and the expectations of future entry points becoming more favourable. Elsewhere, BTIG analyst David Larsen upped the company’s price target, setting it at $85.00, an increase from the prior target of $35.00, while reiterating a “Buy” rating.
Hims & Hers Health, Inc. (NYSE:HIMS)’s revenue excluding its GLP-1 offering went up by 43% YoY to more than $1.2 billion in 2024, meeting its previous 2025 revenue target a year early. Consolidated revenue rose 69% YoY to ~$1.5 billion as the company’s weight loss offering has been providing an accelerant to such trends. This demonstrates the platform’s growing ability to enter new specialties and scale rapidly. Therefore, Hims & Hers Health, Inc. (NYSE:HIMS) continues to focus on building a set of core capabilities that can scale with efficiency.
Cedar Grove Capital Management, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“The point of a hedge fund is to quite literally hedge the portfolio (shocking). When done right, it can be a great strategy to boost returns and reduce the impact of drawdowns as they occur.
While our recent hedge had a great outcome, investing is a constant learning journey, and we recently had a learning lesson with Hims & Hers Health, Inc. (NYSE:HIMS). This wasn’t a learning lesson because we were wrong (we weren’t) but because our view, or lack thereof, of an irrational market, acected our timing.
Below is our shared takeaway. Throughout this year, we’ve been very vocal about HIMS, mainly because it’s our second-largest holding and also because the long-term potential of cash-pay telehealth is immense. The name has done quite well for us, and if you’ve been a paid investor in our research, you know how frequently we update our research and commentary as news headlines come out that could materially alter the long thesis…” (Click here to read the full text)
2. Riot Platforms, Inc. (NASDAQ:RIOT)
Number of Hedge Fund Holders: 38
Short % of Shares Outstanding (as of February 28): ~22.4%
Riot Platforms, Inc. (NASDAQ:RIOT) is a Bitcoin mining company in the US. Gregory Lewis, an analyst from BTIG, maintained a “Buy” rating on the company’s stock and the associated price target was $22.00. The analyst’s rating is backed by a combination of factors highlighting the company’s promising financial outlook. Moving forward, the expected increases in Bitcoin prices and strategic growth initiatives, such as expansion at Corsicana and integration of a newly-acquired engineering business, are expected to aid its revenues. Such measures can enhance Riot Platforms, Inc. (NASDAQ:RIOT)’s operational efficiency and capacity, resulting in strong financial performance.
Notably, 2024 saw major growth initiatives, which include the energization of its Corsicana Facility, and the acquisitions of Block Mining and E4A Solutions, which is a leading electrical engineering services company complementing its Engineering business and Bitcoin mining operations. Riot Platforms, Inc. (NASDAQ:RIOT)’s exploration of AI/HPC opportunities at its Corsicana site demonstrates a potentially transformative move, which can create new revenue streams and diversify Riot Platforms, Inc. (NASDAQ:RIOT)’s business model over and above the Bitcoin mining. The shift can attract a new class of investors and partners, mainly as demand for AI and high-performance computing infrastructure has been increasing. The growth initiatives, together with its significantly improved operating performance, led to the mining of 4,828 Bitcoins during FY 2024, at an average direct cost of $32,216 per coin.
1. Applied Digital Corporation (NASDAQ:APLD)
Number of Hedge Fund Holders: 42
Short % of Shares Outstanding (as of February 28): ~25.4%
Applied Digital Corporation (NASDAQ:APLD) is engaged in designing, developing, and operating digital infrastructure solutions and cloud services for the high-performance computing (HPC) and AI industries. Analyst Kevin Dede from H.C. Wainwright reiterated a “Buy” rating on the company’s stock with the price target of $12.00. The rating is backed by several factors highlighting the company’s strong growth prospects. One major factor is Applied Digital Corporation (NASDAQ:APLD)’s recent financing deal with Macquarie Asset Management, says the analyst. The company has entered into a $5.0 billion perpetual preferred equity financing facility, with investment vehicles of funds managed by MAM, for its HPC business conducted via APLD HPC Holdings LLC.
The partnership validates Applied Digital Corporation (NASDAQ:APLD)’s business model and significantly reduces the capital requirements, enabling it to expand data center capacity efficiently. The analyst believes that the support from Macquarie can enhance Applied Digital Corporation (NASDAQ:APLD)’s credibility and help it secure major leases with hyperscalers, fueling the growth trajectory. The company’s emphasis on AI-enabled computing power remains in line with the elevated demand trends in the market. The company was one of the first companies to recognize the increased demand for power and data centers. Expecting the requirements, it started the construction of its facilities ahead of many hyperscalers, fully tapping the opportunities coming from the shifting demand landscape.
While we acknowledge the potential of APLD as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued AI stock that is more promising than APLD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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