BigBear.ai Holdings (NASDAQ: BBAI) is among the most shorted stocks on Wall Street, highlighting its potential to deliver significant gains in the coming months. As counterintuitive as it sounds, high short interest is offset by technical signals, fundamental improvements, and potential catalysts that could drive short covering and, more specifically, a short squeeze.
While not technically a low-float stock, the 31% short interest paints a different picture; nearly one-third of all shares have been sold short, a massive load to cover in a short time. Time is of the essence, as the days-to-cover is also quite high, about 10 days as of early October, which means any sudden liquidity event can lead to rapid covering and a massive surge in the share price.
