SOFI - What Investors Should Know About Their Heavily Shorted Stocks
In this clip from "The Future of Fintech" on Motley Fool Live , recorded on Feb. 10 , Motley Fool contributors Matt Frankel and Jason Hall discuss their thoughts on heavily shorted stocks and what they think investors should consider before buying.
Matt Frankel: Will says, "Matt, I read a few articles on SoFi (NASDAQ: SOFI) saying the short interest is too high and short-term. It's going to go down. Do you agree? I just bought, thanks." I don't know about you guys, but I really don't care what the short interest is on a stock. It's nice to know just because it can explain share price dynamics. When the meme stock thing started, knowing what your stocks' short interest was, Jason and I both invest in Tanger Outlets (NYSE: SKT) , I believe, that was when it went very meme stock-ish and, I said, why is this real estate stock of no particular importance to the market doubling in a day? The answer was, it was one of the most heavily shorted stocks. So, it's worth knowing because it can really explain price moves that don't really have any other explanation. But their short interest, I want to say, it was about 15% last I looked.
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What Investors Should Know About Their Heavily Shorted Stocks