3 Summer Short-Squeeze Candidates With Catalysts for Covering

Group 1: Short Squeeze Dynamics - Short squeezes can lead to significant gains for traders and investors, but high short interest often indicates underlying issues [1] - Stocks with high short interest may still have fundamentally sound operations and growth outlooks, raising questions about potential catalysts for a squeeze [2][3] - The upcoming earnings release for SoundHound AI is anticipated to be a catalyst that could drive out short sellers, as the company is experiencing hyper growth [2][3] Group 2: SoundHound AI Analysis - SoundHound AI's short interest was at 32% in late June, with recent reports indicating a rise in short interest, increasing the likelihood of a squeeze [2] - MarketBeat's consensus forecast for SoundHound AI's revenue growth in FQ2 is 145%, which is expected to be exceeded [3] - Analysts predict that an improved outlook could lead to raised expectations for future revenue growth and profitability, serving as a catalyst for a potential squeeze [3] Group 3: Etsy's Short-Selling Situation - Etsy's stock has faced persistent high short interest, currently at 23%, which has been rising in Q2 [6] - The company's strategy shift towards AI and automation is expected to enhance user experience and sales, potentially alleviating short-selling pressure [6][7] - Analysts have noted a downtrend in sentiment, but recent price target increases suggest a positive outlook for the company's future performance [7][8] Group 4: Brinker International Overview - Brinker International's short interest was nearly 15% at the end of May, despite signs of accelerating growth from its turnaround efforts [12] - The company reported nearly 30% growth in fiscal Q1, with strong forecasts for Q2 and the year ahead [12][14] - Analysts have increased price targets, with expectations for the stock to reach new highs, indicating bullish sentiment [13][14]