Analysis of Schaeffers Research's 25 Stocks With Short Squeeze Potential

This analysis is based on a December 31, 2025, Schaeffers Research report [1] that identifies stocks with high short interest relative to float, increasing short interest trends, and underwater short positions—factors conducive to short squeezes in 2026. Four prominent stocks from the report’s highlights include Applied Digital (APLD, technology/data center infrastructure), Oklo (OKLO, nuclear energy), IREN Limited (IREN, financial services), and Rigetti Computing (RGTI, quantum computing).

Key metrics show APLD has an extremely high short float of 34.25% (as of 12/15/25) [3], making it particularly susceptible to a short squeeze if upward price momentum occurs. OKLO’s 16.31% short float [4] is moderate but still notable. All four stocks have delivered strong YTD gains (APLD: 215.18%; IREN: 284.62%; RGTI: 45.15%) [0], with OKLO showing high volatility across its 52-week range ($17.42 to $193.84) [0]. Sector growth potential in data centers, quantum computing, and nuclear energy could sustain momentum beyond short-term squeezes, but high short interest may also reflect market skepticism about valuations (negative P/E for APLD, OKLO, RGTI) [0].

Information gaps include the full 25-stock list, short interest data for IREN and RGTI (due to rate limits), days-to-cover ratios, short interest trends, and company-specific catalysts mentioned in the report that could trigger price movements.

1. Sector-Driven Momentum
   : The highlighted stocks operate in high-growth sectors, which may attract bullish investors and exacerbate short squeeze risk if positive sector news emerges.
2. Market Divergence
   : High YTD gains alongside significant short interest (especially for APLD) indicate a split between bullish (sector growth) and bearish (valuation/fundamental) market views.
3. Analyst Ratings as Catalyst
   : The “Buy” consensus ratings and significant upside price targets for all four stocks [0] could attract additional buyers, potentially triggering short covering.

• Short-term price surges for stocks with high short interest (APLD in particular) if upward momentum triggers short covering.
• Sector growth trends supporting potential long-term value beyond squeeze-related volatility.

• Volatility
  : Short squeezes are unpredictable and can reverse rapidly, leading to sharp price declines.
• Fundamental Concerns
  : Negative P/E ratios for APLD, OKLO, and RGTI indicate current losses, which could weigh on long-term performance.
• Liquidity
  : OKLO’s low trading volume (6.68M shares on 12/31/25) [0] may amplify price swings during a squeeze.
• Regulatory Scrutiny
  : Coordinated speculative trading could attract regulatory attention.

• Stocks Identified
  : APLD, OKLO, IREN, RGTI
• Short Float (as of 12/15/25)
  : APLD (34.25%), OKLO (16.31%)
• YTD Gains
  : APLD (215.18%), IREN (284.62%), RGTI (45.15%)
• Valuation
  : Negative P/E (APLD, OKLO, RGTI); P/E 15.64x (IREN)
• Analyst Consensus
  : “Buy” with upside targets (APLD: ~$33; OKLO: ~$75; IREN: ~$75; RGTI: ~$37.50)
• Key Metrics to Monitor
  : Price trends, monthly short interest updates, company news, and sector developments.

This summary provides objective context for decision-making without prescriptive investment recommendations.