The Short Interest Monitor

Tracking stocks with high and rising short interest can help traders gauge market sentiment, monitor positioning trends, and spot potential red flags in key market sectors. That's why our Short Interest Monitor—using data from the Financial Industry Regulatory Authority (FINRA) and Schwab.com—highlights equities that have recently seen a rise in short interest.

Our latest list features a wide range of stocks in various industries, including a few names that have made headlines in recent weeks.

Short sellers continued to pile into Lyft Inc. (LYFT) shares in the final two weeks of March, leading its short interest to rise 18.3% from the prior reporting period. The rideshare company has faced multiple analyst downgrades in recent months amid increasing competition from Alphabet (GOOGL)-owned Waymo and Uber (UBER). It also turned in weaker-than-expected fourth-quarter rider numbers in February and missed analysts' revenue forecasts. LYFT shares were down more than 30% year to date through April 13, and roughly 19% of its outstanding shares were sold short.

SoFi Technologies (SOFI) also saw its short interest rise more than 18% in the final two weeks of March after the short seller Muddy Waters Research published a short report alleging SOFI inflated its 2025 adjusted EBITDA figures and diluted its stock to enrich executives. SoFi disputed the short report, calling it factually incorrect, and said it may take legal action against Muddy Waters Research. SoFi CEO Anthony Noto also purchased roughly $1.5 million worth of stock in mid-March in a display of confidence in the company. SOFI shares were still down roughly 40% year to date through April 13, and 12.9% of its outstanding shares were sold short.

The rare earth mining company MP Materials (MP) was also in the bearish spotlight in the latter half of March. MP's shares have surged since the beginning of 2025, in part due to a landmark deal with the U.S. Department of Defense (DoD). The DoD agreed to a 10-year deal to buy MP Materials' rare earth metals and invested $400 million in its preferred stock as part of a broader strategic investment. A lofty valuation and recent insider sales have spooked MP investors this year, however. Its short interest rose more than 10% in the final two weeks of March, and 14.5% of its outstanding shares were sold short as of April 13.

Check out the table below to see our list of 10 equities with elevated and rising short interest. Each stock has a market cap of at least $2 billion and short interest that represents at least 10% of the company's total outstanding shares.

A few more high-profile stocks that didn't meet the criteria to make our list stood out when reviewing FINRA's latest data.

The enterprise software giant Salesforce (CRM) saw its short interest skyrocket roughly 240% from the last reporting period in late March. More than 8% of CRM's outstanding shares were sold short as of April 13. The software industry has been under pressure of late due to investor fears about AI's ability to disrupt software business models. CRM stock was down more than 50% from its December 2024 record high through mid-April. The company looked to take advantage of the decline in its stock price in March, announcing an accelerated $25 billion share repurchase program, but the move didn't dissuade short sellers.

Despite reporting strong earnings in the fourth quarter, Canadian banks were also the targets of some short sellers in the latter half of March. Toronto Dominion Bank (TD) saw its short interest surge 70% from the last reporting period, while the Royal Bank of Canada's (RY) short interest rose 73% over the same period. It was a similar story for the Bank of Nova Scotia (BNS) and the Canadian Imperial Bank (CM), which faced a 90% and 34% short interest rise, respectively. Mounting concerns over a potential rise in mortgage defaults could be one factor behind the trend. Between 2020 and 2022, many Canadians were able to secure ultra-low mortgage rates, but their payments may increase significantly moving forward due to the popular 5-year variable-rate mortgage structure. Some borrowers could see payments jump 40%, Yahoo Finance reported earlier this year.

Airlines also continued to be targeted by short sellers in the final two weeks of March due to surging jet fuel prices amid conflict in Iran and the closure of the Strait of Hormuz. Beyond Alaska Air Group (ALK), which made our list, American Airlines (AAL), Delta Air Lines (DAL), and United Airlines (UAL) saw their short interest climb 32%, 45%, and 18%, respectively, from the last reporting period. Airlines outside the United States also garnered attention from short sellers. Air China (AICAF) saw its short interest surge 131% from the last reporting period, while Japan's ANA Holdings (ALNPY) and Latin American carriers Copa Holdings (CPA) and LATAM Airlines (LTM) all faced short interest increases of more than 10%.

Schwab's list of highly shorted stocks includes a few key terms that should be clearly understood. There are also notable limitations to the FINRA data used in this series. Consider the following:

FINRA requires broker-dealers to report total open short positions for all the equity securities on their books twice monthly. It then compiles this data and releases it to the public on the seventh business day after the reporting settlement date. However, FINRA's short interest report does not include off-exchange short sale trades, and it only reflects a snapshot of short positions held by brokerage firms on two specific days each month. For more information, review FINRA's article titled "Short Interest — What It Is, What It Is Not."

Our Short Interest Monitor includes four key statistics worth defining: current short interest, percentage short interest change from the prior reporting period, days to cover, and short interest as a percentage of shares outstanding.

• Current short interest represents the total number of open short positions held on brokerage firms' books for a given security, as reported by FINRA.
• Percentage change from the prior reporting period reflects the percentage increase or decrease in the total number of open short positions for a given security compared to the previous reporting cycle.
• Days to cover measures how many days—at average daily volume—it would take for all short sellers to buy back their borrowed shares and close their positions. Higher numbers typically indicate a stronger bearish conviction and greater risk of a short squeeze.
• Short interest as a percentage of shares outstanding represents the portion of a company's tradable shares that are currently sold short and not yet covered. A ratio above 10% is typically considered high, while a ratio of 20% or more indicates more severe bearish sentiment and a higher potential for a short squeeze.

It's also worth noting that targeting battleground stocks is a high-risk tactic. While some traders may be hoping to participate in a short squeeze that can drive prices higher, stocks with high or rising short interest may have deteriorating fundamentals, rising competition, or other issues that could continue to weigh on their prices. Additionally, these stocks may experience increased volatility or have liquidity issues. And a single event—like a positive earnings report or lawsuit outcome—can quickly shift market narratives, leading to unexpected price moves.

Finally, short sellers should keep in mind that highly shorted stocks often come with equally high borrowing fees that can weigh on returns. Dividend payments are also deducted from short seller accounts on the pay date, and losses from short selling are theoretically unlimited.