3 stocks with high short interest that could see growth in 2025

In the stock market, there is a strategy focusing on stocks with high short interest - shares that have been shortedwhich means that investors are speculating on a fall in their price. This indicator may signal that the market is expecting a decline in the value of the stock. However, if the price starts to rise, conditions may be in place for a 'short squeeze'. short squeezewhere short sellers have to buy back shares, further increasing their price.

In this article, we focus on three companies that have a high share Shorted in the market and could see growth in 2025.

Reddit: A social network with untapped potential

Reddit $RDDT, a well-known site connecting community discussions and content from various fields, is showing strong growth, both in user numbers and revenue. In 2025, Reddit surpassed 97 million daily active users, a 47% increase over last year. This growth gives the platform a strong position not only in the social media field, but also for investors.

In terms of financial results, Reddit posted revenue of $348.4 million in the most recent quarter, an increase of more than 68% year-over-year. This growth is expected to continue, mainly due to the growing interest in the company's advertising services and products.

Despite Reddit showing growth, as much as 15.6% of the stock is Shorted, a high proportion compared to other tech firms. This suggests that if Reddit's share price continues to rise, they may short sellers face pressure and their positions may be closed, creating conditions for short squeeze.

SoFi Technologies.

SoFi Technologies $SOFI is a leader in fintech, bringing digital banking services, lending, refinancing and investment products. In 2024, SoFi's stock price rose 76.3%, a sign of its strong momentum, even though the market was not ideal.

Currently, as much as 12.8% of SoFi's shares are Shortedwhich means that investors are expecting the price to fall. This share suggests a high potential for short squeezeif the share price starts to rise. The main factor that could positively affect SoFi's price is a drop in interest rates, which could revive the mortgage market. SoFi has already proven itself in challenging conditions, and if interest rates actually fall, the company could show strong growth.

Further, SoFi is benefiting from a growing customer base, which is a positive signal for its future growth. Institutional investors have also started to become more involved in the company, confirming confidence in its growth potential.

CAVA Group: a new fast food player on the rise

CAVA Group $CAVA, a restaurant company focused on Mediterranean cuisine, is showing strong growth. Although its ambitions seemed too big at the beginning, it is now clear that the company has established itself as a strong player in the fast food segment. In the last year, CAVA has reported a 39% increase in revenue, indicating that the company is in a strong growth phase.

Despite the strong growth, as much as 10.4% of CAVA's shares Shorted by, which is significantly higher than the competition. This creates the potential for short squeezeif the share price starts to rise. CAVA is benefiting from positive financial results and growing demand for its products. Given these factors and a target share price of $143.80, a 25% increase from the current price, CAVA has great upside potential. If the trend is sustained, short sellers will be in trouble.

Disclaimer: You will find a lot of inspiration on Bulios, but stock selection and portfolio construction is up to you, so always do a thorough analysis of your own.

Source: Marketbeat