Stock Of The Day: Will BigBear Have Another Short-Squeeze?

Core Viewpoint - BigBear.ai Holdings, Inc. (NYSE:BBAI) is experiencing significant volatility due to its high short interest, making it susceptible to short squeezes, which presents potential investment opportunities [1][2]. Short Interest and Squeeze Dynamics - The current short interest for BigBear is 21.5%, which is considered extremely high and increases the likelihood of a short squeeze [2]. - Short squeezes occur when the stock price rises, leading to increased losses for short sellers, prompting them to buy back shares, which further drives the price up [2][3]. - A panic can ensue among short sellers as losses mount, resulting in a bidding war that pushes the stock price even higher [4]. Historical Performance - There have been two notable short squeezes for BigBear this year, with the first causing a price increase of approximately 125% and the second a rise of 95% [5]. Volatility and Investment Opportunities - Following a short squeeze, the stock may revert to its previous price levels, indicating that holders of BigBear may face extreme volatility, but this volatility also presents opportunities for profit [7].