In this article, we discuss the 5 most-shorted stocks Reddit’s WallStreetBets is paying attention to. If you want to read our detailed analysis of these stocks, go directly to the 10 Most-Shorted Stocks Reddit’s WallStreetBets Is Paying Attention To.
5. Clover Health Investments, Corp. (NASDAQ: CLOV)
Number of Hedge Fund Holders: 23
Float Shorted: 26.7%
Clover Health Investments, Corp. (NASDAQ: CLOV) is a health insurer. It is ranked fifth on our list of 10 most-shorted stocks Reddit’s WallStreetBets is paying attention to. Although Reddit interest in the firm had been waning in May, the increase in short interest on the stock in the past month has increased the interest of retail investors in the stock, with mentions increasing slowly over the past four weeks. The firm has a market cap of over $3.2 billion and posted more than $690 million in revenue last year.
Clover Health Investments, Corp. (NASDAQ: CLOV) has soared upon mentions on forums like WalStreetBets and StockTwits, registering rallies of 36% and 19% on June 8 and June 9 respectively. However, JPMorgan and Bank of America have downgraded the stock recently.
Out of the hedge funds being tracked by Insider Monkey, San Francisco-based investment firm Greenoaks Capital is a leading shareholder in Clover Health Investments, Corp. (NASDAQ: CLOV) with 96.3 million shares worth more than $728 million.
4. MicroStrategy Incorporated (NASDAQ: MSTR)
Number of Hedge Fund Holders: 20
Float Shorted: 27.5%
MicroStrategy Incorporated (NASDAQ: MSTR) is placed fourth on our list of 10 most-shorted stocks Reddit’s WallStreetBets is paying attention to. The stock has returned 361% to investors in the past twelve months. The firm operates as a software vendor focusing on enterprise analytics. It is based in Virginia. In recent months, the firm has invested heavily in cryptocurrencies. It was hit by a recent slump in crypto prices, but has managed to weather the storm because of mentions on Reddit forums like WallStreetBets.
On May 4, investment advisory William Blair initiated coverage of MicroStrategy Incorporated (NASDAQ: MSTR) stock with an Outperform rating. The advisory identified the company as one of the leading software vendors in enterprise analytics.
At the end of the first quarter of 2021, 20 hedge funds in the database of Insider Monkey held stakes worth $132 million in MicroStrategy Incorporated (NASDAQ: MSTR), up from 15 in the previous quarter worth $134 million.
In its Q1 2021 investor letter, Alger, an asset management firm, highlighted a few stocks and MicroStrategy Incorporated (NASDAQ: MSTR) was one of them. Here is what the fund said:
“MicroStrategy Incorporated was among the top contributors to performance. MicroStrategy is a global leader in enterprise analytics software and services. MicroStrategy’s core software platform provides customers with visualization and reporting capabilities, mobility features and custom applications to help with complex business questions. Today, MicroStrategy has over 4,000 customers worldwide. In August 2020, MicroStrategy decided to make bitcoin its preferred reserve currency. To date, MicroStrategy has purchased over 90,000 bitcoins at an aggregate purchase price of $2.17 bi11 ion and an average price of over $23,985 per bitcoin. Going forward, MicroStrategy plans to use excess cash generated by its core business to purchase additional bitcoin.
Shares of MicroStrategy outperformed in the first quarter due to the appreciation of the company’s bitcoin asset, as the price of
bitcoin relative to the U.S. dollar rose materially in the quarter. This bitcoin appreciation was driven by concerns about U.S. dollar inflation as well as other public companies deciding to acquire bitcoin to diversify reserve assets. MicroStrategy is establishing itself as a thought leader in the bitcoin space, and the company hosted an event at its February user conference to help other organizations understand the benefits of bitcoin as a reserve asset. MicroStrategy’s core software business is also benefitting from its status as a leader in the bitcoin space, with the increased public attention aiding MicroStrategy’s recruitment and marketing efforts as the software business continues to transition to a cloud-based subscription model.”
3. Canoo Inc. (NASDAQ: GOEV)
Number of hedge fund holders: 16
Float Shorted: 33.1%
Canoo Inc. (NASDAQ: GOEV) is a California-based firm that makes and sells electric vehicles for commercial and consumer use. It is ranked third on our list of 10 most-shorted stocks Reddit’s WallStreetBets is paying attention to. The firm has a market cap of close to $2 billion. The firm stands to benefit from recent news from China and Europe regarding EVs. Sales of electric cars in the former have started increasing again and the latter has started mulling over a ban on vehicles that use internal combustion engines.
On June 21, investment advisory RF Lafferty maintained a Buy rating on Canoo Inc. (NASDAQ: GOEV) stock with a price target of $18, noting that the firm was well ahead of competitors in the EV space in development and evaluation of vehicles.
At the end of the first quarter of 2021, 16 hedge funds in the database of Insider Monkey held stakes worth $14.8 million in Canoo Inc. (NASDAQ: GOEV), down from 17 in the previous quarter worth $96.6 million.
2. Workhorse Group Inc. (NASDAQ: WKHS)
Number of Hedge Fund Holders: 16
Float Shorted: 34.8%
Workhorse Group Inc. (NASDAQ: WKHS) is an Ohio-based firm in the battery electric vehicle and aircraft business. It is placed second on our list of 10 most-shorted stocks Reddit’s WallStreetBets is paying attention to. The firm is one of the most popular stocks on Reddit and a recent report from Bank of America indicates that Reddit stocks are being driven by more than just social media mentions. This analysis is based on overall stock mentions on popular forums and the rallies they have registered over the year so far.
On April 16, investment advisory B Riley initiated coverage of Workhorse Group Inc. (NASDAQ: WKHS) stock with a Buy rating and a price target of $20, highlighting that the firm could gain with customers through production and sales numbers this year.
At the end of the first quarter of 2021, 16 hedge funds in the database of Insider Monkey held stakes worth $96.6 million in Workhorse Group Inc. (NASDAQ: WKHS), the same as in the preceding quarter worth $90.8 million.
1. Marin Software Incorporated (NASDAQ: MRIN)
Number of Hedge Fund Holders: 2
Float Shorted: 47.7%
Marin Software Incorporated (NASDAQ: MRIN) is ranked first on our list of 10 most-shorted stocks Reddit’s WallStreetBets is paying attention to. The company’s shares have offered investors returns exceeding 468% over the course of the past twelve months. The firm is based in California and provides marketing software to advertisers. It has a market cap of over $100 million and posted close to $30 million in revenue last year. The company recently published three new customer case studies.
Marin Software Incorporated (NASDAQ: MRIN) is one of the most mentioned stocks on social media forums like WallStreetBets. On June 29, the shares gained 89% in a single day after strong user opinion in favor of the firm on Reddit forums and other platforms like StockTwits.
At the end of the first quarter of 2021, 2 hedge funds in the database of Insider Monkey held stakes worth $818,000 in Marin Software Incorporated (NASDAQ: MRIN), down from 3 in the previous quarter worth $1.1 million.
You can also take a peek at 10 Stocks Reddit’s WallStreetBets is Buying in July 2021 and Top Robinhood Stocks Popular on Reddit.
