Short Squeeze Stocks: The Usual Suspects, & One Newcomer

• Key stocks identified include Applied Digital (APLD), Nebius Group (NBIS), and biotech Nektar Therapeutics (NKTR) based on short interest data from March 1, 2026
• The analysis assumes shorts could begin covering positions if losses mount, creating potential buying opportunities for contrarian investors
• Biotech and software are currently the two most heavily-shorted sectors, even as markets focus on surging oil prices

Summary

Key Focus: Identifying stocks vulnerable to short squeezes amid current market volatility driven by surging oil prices.

Methodology: Schaeffers Research screened for heavily-shorted stocks where bearish bettors may face significant losses, potentially triggering covering activity. The analysis tracked short interest reports over the past year, estimating entry prices using two-week averages to calculate potential short-seller losses. Data reflects the most recent reporting period as of March 1, 2026.

Featured Companies:

• Applied Digital (APLD) - AI sector name
• Nebius Group NV (NBIS) - AI-related company
• Nektar Therapeutics (NKTR) - Biotech firm

Sector Analysis: Biotech and software emerge as the two most heavily-shorted sectors, presenting elevated short-squeeze potential.

Market Context: While Wall Street remains preoccupied with rising oil prices, the report suggests contrarians should monitor these heavily-shorted names for potential buying opportunities. The timing could create favorable conditions for short squeezes as bearish positions become increasingly unprofitable.

Investment Implication: Stocks with significant accumulated short positions now trading above shorts' estimated entry prices could force rapid covering, potentially driving sharp upward price movements. The presence of prominent AI names on the list reflects sector-specific bearish positioning that may be vulnerable.

Trading Performance Note: The firm highlighted recent options trading successes, including back-to-back double-digit gains on Celsius and Palantir, alongside notable wins of +400% on AAOI and +300% on MOS positions.

The analysis provides a contrarian framework for identifying dip-buying opportunities in heavily-shorted stocks where short-seller capitulation could catalyze upside momentum.