18 Growth Stocks Ripe for a Short Squeeze

• The analysis uses short interest data from the most recent reporting period (December 15) and estimates short seller returns by tracking when positions were added over the past year using average prices from two-week periods
• The opportunity arises as Wall Street rotates out of growth stocks, creating a contrarian play where shorts facing losses may be forced to cover, potentially triggering upward price momentum
• Key stocks identified include AST SpaceMobile (ASTS), IREN (IREN), and nuclear energy company Oklo (OKLO) as having significant short interest with potential for squeeze scenarios

Summary

Key Development: Schaeffer's Research identifies 18 heavily shorted growth stocks with potential for short squeeze opportunities amid current market volatility, despite investors rotating away from growth stocks.

Screening Methodology: The analysis examined short interest reports from the past year, calculating estimated returns for short sellers by using average prices from the two-week period when shorts were added. The screening targets stocks where short sellers face significant losses and may be forced to cover positions.

Companies Highlighted:

• AST SpaceMobile (ASTS)
• IREN (IREN)
• Oklo (OKLO) - nuclear energy startup

Market Context: The report is dated February 12, 2026, with short interest data from the most recent reporting period (December 15). Growth stocks are currently out of favor as Wall Street rotates away from the sector, creating a contrarian opportunity for investors willing to buy the dip.

Investment Thesis: The screen identifies situations where accumulated short positions could trigger covering rallies if prices move against bearish bettors. The methodology assumes shorts are vulnerable when positions show substantial unrealized losses.

Track Record Promotion: The article references recent successful trades including back-to-back double-digit gains on Celsius and Palantir, with various options strategies generating returns ranging from +100% to +302% across multiple securities including SE, TJX, ORCL, MDT, CRCL, DOCN/DOCU, COHR, and CB.

Strategic Implication: While heavily shorted growth stocks face headwinds in the current market environment, contrarian investors may find opportunities in potential short squeezes as bearish positions become increasingly unprofitable.