Bank of America compiled a list of stocks that hedge funds are betting against the most. On the S&P 500 (SPY) (IVV) (VOO), Moderna (MRNA) is at the top, with a short interest as a percentage of flat at 17.4%.
Moderna’s stock price might double next. The stock price bottomed at $22.28 in late November, amid the flu season. It closed at nearly $42 on January 17. The firm’s CEO, Stephane Bancel, said on January 12 that the company would grow its revenue by 10% in 2026.
Moderna is depending on building its vaccine franchise. It is targeting oncology and rare diseases to increase its addressable market.
Homebuilder Lennar (LEN) has a 16% short interest. This bet is misguided, since mortgage rates continue to fall. Construction jobs are strengthening, which would suggest strong homebuilding activity for Lennar.
Super Micro Computer (SMCI) has a 14.5% short interest. The server supplier has unreliable financial statements. Investors are unsure that SMCI will file quarterly reports on time.
In telecom, Charter Communications (CHTR) has a 13.1% short interest. The company is profitable, but growth rates are worsening. CHTR stock has poor momentum, too.
In the advertising space, Trade Desk (TTD) has a 10.5% short interest. The firm is unlikely to replace Alphabet as the standard in advertising. TTD stock risks falling below $30 this year if its growth rate falls.
