2 Shorted Stocks Under Fire: Do Bulls or Bears Have It Right?

Core Insights - The article discusses the contrasting fortunes of two high-profile industries: artificial intelligence (AI) and green hydrogen energy, highlighting SoundHound AI Inc. and Plug Power Inc. as companies facing significant short interest from investors [1][2]. Group 1: SoundHound AI Inc. - Short interest in SoundHound has increased by approximately 19% leading up to March 14, 2025, with over 34% of its float being shorted [3]. - Despite recent price drops, SoundHound reported a fourth-quarter revenue that was over double that of the previous year, with an 85% year-over-year revenue improvement compared to 2023 [5]. - The company raised its full-year 2025 revenue guidance to a range of $157 million to$177 million, indicating potential for continued growth [5]. - SoundHound has successfully penetrated various markets, including restaurants, healthcare, and automotive, contributing to its strong customer base and brand recognition [6]. - The stock forecast for SoundHound indicates a current price of $10.08 with a 12-month price target of$12.86, suggesting a potential upside of 27.55% [4]. Group 2: Plug Power Inc. - Plug Power has seen a slight decrease in short interest, with 31.5% of its float being shorted as of March 14, 2025 [7]. - The company faces challenges due to production delays and high costs, with revenue impacted by asset impairments and bad debt [8]. - Plug Power announced plans to achieve annualized cost savings of $150 million to$200 million through staff reductions and operational consolidations [9]. - The stock forecast for Plug Power shows a current price of $1.70 with a 12-month price target of$2.34, indicating a potential upside of 37.84% [9]. - The company is shifting focus towards green hydrogen, which is seen as a simpler transition for customers moving away from grey hydrogen [10].