Carvana Is 1 Of The 20-Most Shorted Stocks On The Market, But Share Prices Keep Going Up
Portfolio Pulse from Aaron Bry
Carvana Co (CVNA) is among the top 20 shorted stocks but has seen a significant increase in share price, up over 1,000% YTD. Other heavily shorted 'meme stocks' like GameStop (GME) and AMC Entertainment (AMC) have also experienced rallies. Despite past growth and a subsequent price drop, Carvana's stock has surged recently, possibly due to investor optimism for lower interest rates in 2024. Upstart Holdings (UPST) has similarly rebounded, with its stock up nearly 80% in the last month.
December 21, 2023 | 9:49 pm
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AMC Entertainment, known for its dramatic rise during the 2021 short squeeze, continues to attract retail investors and has seen its stock price rally.
AMC's stock has been rallying, likely due to the same investor interest that has boosted other shorted stocks. The trend may persist in the short term, driven by retail investor speculation.
CONFIDENCE 65
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
Carvana's stock has risen sharply, up over 1,000% YTD, despite being one of the most shorted stocks and facing bankruptcy concerns earlier in the year.
Carvana's stock price has shown resilience and significant growth despite being heavily shorted and previous bankruptcy concerns. The recent rally may continue in the short term due to investor optimism for lower interest rates, which could encourage risk-taking.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
GameStop, another heavily shorted stock, has been rallying and outperforming the S&P 500, reminiscent of its 2021 surge.
GameStop's stock is experiencing a rally alongside other meme stocks, which could indicate a short-term positive trend as these stocks have been gaining interest from retail investors.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Upstart Holdings has rebounded from a significant drop, with its stock price increasing nearly 80% in the last month.
Upstart's stock has seen a substantial recovery, which could continue in the short term as investor sentiment shifts towards taking on more risk in anticipation of potential lower interest rates.
CONFIDENCE 70
IMPORTANCE 65
RELEVANCE 70