5 Most Shorted Stocks in 2022

In this article, we will be taking a look at the 5 most shorted stocks in 2022. To read our detailed analysis of these stocks and the strategy of shorting a stock, you can go directly to see the 10 Most Shorted Stocks in 2022.

5. MicroStrategy Incorporated (NASDAQ:MSTR)

Number of Hedge Fund Holders: 18

MicroStrategy Incorporated (NASDAQ:MSTR) is an information technology company offering enterprise analytics software and services. The company is based in Tysons Corner, Virginia.

On August 3, Joseph Vafi at Canaccord reiterated a Buy rating on MicroStrategy Incorporated (NASDAQ:MSTR) shares. The analyst also placed a $372 price target on the stock.

This August, MicroStrategy Incorporated’s (NASDAQ:MSTR) short interest was 36.5%. Previously in June, 37.7% of the company’s total float had been shorted.

Out of 895 hedge funds tracked in the second quarter, 18 hedge funds were long MicroStrategy Incorporated (NASDAQ:MSTR). Their total stake value was $104.6 million.

Investment management company Bireme Capital mentioned MicroStrategy Incorporated (NASDAQ:MSTR) in its second quarter 2022 investor letter. Here’s what it said:

“We also remain short MicroStrategy, a middling business analytics software company that turned itself into a gigantic levered bet on Bitcoin at the height of the hype cycle – losing over a billion dollars in the process. Now, the company will need all the cash flow from the business just to pay off the interest payments on the enormous debt load, leaving no earnings for equity holders. Despite shares down over 60% for the year, the company continues to trade at a material premium to the value of its assets. For more detail on our thesis, please see our blog post here, as well as the Forbes and Fortune write-ups that feature our short position.”