Today’s rally has seen many highly shorted meme stocks, such as Bed Bath and Beyond (BBBY), surge. This list includes:
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The reason is that investors are optimistic about inflation cooling down and have switched to a risk-on environment. As a result, short-sellers are getting squeezed as they try to cover their positions. Nevertheless, each stock mentioned has seen painful declines over the past 12 months, as indicated by the image below.
Indeed, the best-performing stock was GME, which lost over 16% of its value. CVNA and BBBY were the worst performers, as they destroyed over 91% and 84% of their equity values, respectively. Therefore, only recent investors are truly enjoying today’s price movements.