JPMorgan flags 3 stocks with the ingredients for a short squeeze

Core Viewpoint - Retail investors are actively seeking potential short squeeze opportunities, with JPMorgan identifying three stocks that are gaining traction among retail investors while facing increased short interest from institutional investors [1][2]. Group 1: Retail Investor Activity - Retail investors have shown significant buying interest in Cipher, purchasing $14.2 million worth of its stock recently [3]. - TeraWulf has the highest short interest, with 40% of its total float being shorted, while Nuvation has 28% and Cipher has 20% [3]. - Positive social media sentiment has consistently favored Cipher over the past month, while TeraWulf's sentiment has been more volatile and has recently declined [5]. Group 2: Short Seller Interest - Short interest in TeraWulf has increased by 8% in the last month, indicating growing bearish sentiment among short sellers [4]. - Although short interest in Cipher has declined recently, it still remains elevated at approximately 20% of its float [3][4]. Group 3: Market Reactions - Cipher's stock experienced a 10% increase in premarket trading following news of Google taking a stake in the company, but ultimately fell 15% by the end of the trading day [4]. - TeraWulf's stock also surged previously due to a similar deal, highlighting the impact of strategic partnerships on stock performance [4].