Identifying Potential Short Squeeze Opportunities on the NYSE

Have you ever been in a situation where you’ve shorted a stock, only to witness a sudden surge, leading to an immediate scramble to close your position?

What occurred is commonly referred to as a Short Squeeze. Even veteran traders have encountered this event. Yet, do they truly grasp what happened?

A short squeeze occurs when a heavily shorted stock experiences a significant surge in buying volume, prompting short sellers to close their positions, thus driving prices higher due to the resulting covers.

Shorting a stock involves aiming to profit from its price decline. Essentially, you borrow shares, sell them, and later repurchase them ideally at a lower price to return. This process occurs electronically, so you won’t physically witness the borrowing and returning; instead, it reflects as a negative share count on your screen.

Short sellers can see profits, but when a stock starts to move against them, rising in value, they often rush to buy shares to close their positions, resulting in a short squeeze. This rapid increase in share prices during a short squeeze can be triggered by any positive news.

Finding a stock for a short squeeze involves identifying certain characteristics that make it a potential candidate:

Look for stocks with high short interest ratios (the ratio of shares sold short compared to shares available for trading), as these indicate a large number of investors betting against the stock.

Additionally, consider stocks with low float (the number of shares available for trading), as a smaller float can exacerbate price movements, especially if demand suddenly increases.

Lastly, monitor stocks with upcoming catalysts such as earnings reports or significant news announcements, as positive developments can trigger short squeezes by prompting short sellers to cover their positions quickly.

Some traders capitalize on this scenario by seeking out stocks with potential for a short squeeze. Below, you’ll find further elaboration on the information provided above:

Short Percentage of Float indicates the portion of shares held short divided by the total float, representing freely tradable shares. A short percentage exceeding 10% to 20% is often seen as high and may suggest potential opportunities for short squeezes.

The Short Ratio, also referred to as Days to Cover or Short Interest Ratio, is a critical measure for identifying potential short squeeze opportunities. It signifies the number of days it would take for short sellers to repurchase their positions based on the average daily trading volume of shares. This ratio is significant because it reveals the challenge short sellers encounter in covering their positions without significantly impacting the stock price. A higher number of days to cover implies a more prolonged squeeze, amplifying potential losses for short sellers.

Short Percentage Increase denotes the percentage rise in the number of short sellers compared to the previous month.

The following are some heavily shorted NYSE stocks that may be worth considering for a short squeeze.

Company	Company Symbol	Short Interest	Short % Change	Short Interest Ratio
Kohl’s Corporation	KSS	33.39%	3%	6.9
Guess?, Inc.	GES	32.34%	4%	6.7
C3.ai Inc	AI	31.85%	1%	4.7
Virgin Galactic Holdings Inc	SPCE	29.18%	11%	7.5
ChargePoint Holdings Inc	CHPT	28.58%	-2%	7.9
Carvana Co	CVNA	28.54%	-4%	4.2
Big Lots, Inc.	BIG	28.37%	6%	5.1

The first stock on the list, Kohl’s Corporation (KSS) has over 33% of its float shorted, an increase of 3% over last month. The short interest ratio is 6.9, which means that it would take the short sellers over six days to cover their position, based on recent average volume.

The second stock on the list, Guess?, Inc. (GES) has over 32% of its float shorted, an increase of 4% over last month. The short interest ratio is 6.7, which means that it would take the short sellers under seven days to cover their position, based on recent average volume.

An interesting stock on the list, Virgin Galactic Holdings Inc. (SPCE) has over 29% of its float shorted, a large increase of 11% over last month. The short interest ratio is 7.5, which means that it would take the short sellers just over a week to cover their position, based on recent average volume.

While a stock might display promising ratios and draw considerable short interest, it’s essential to understand that these indicators alone don’t assure an upward price movement, especially in a bear market. Moreover, elevated levels of short interest in a stock may indicate underlying issues or concerns that have led investors to take positions against its performance.

Disclosure: Author had no positions in any of the above at the time the article was written.

NYSE Stocks with the Highest Short Interest for Short Squeeze Plays

by Fred Fuld III

Have you ever wondered why stocks that are heavily shorted can spike up in price so much?

When you short a stock, it means that you plan to make money from a drop in the price of a stock. Technically, what happens is that you borrow shares of a stock, sell those shares immediately, then buy back those shares at a hopefully lower price so that you can return those shares. This all happens electronically, so you don’t actually see all the borrowing and returning of shares; it just shows up on your screen as a negative number of shares.

Short sellers can make money, but sometimes when the stock moves against them, and begins to rise, the short sellers jump in fast to buy shares to cover their positions, creating what is called a short squeeze. When a short squeeze takes place, it can cause the share prices to increase fast and furiously. Any positive news can trigger the short squeeze.

Some traders utilize this situation by looking for stocks to buy that may have a potential short squeeze. Here is what a short squeeze trader should take into consideration:

Short Percentage of Float ~ The float is the number of freely tradable shares and the short percentage is the number of shares held short divided by the float. Amounts over 10% to 20% are considered high and potential short squeeze plays.

Short Ratio / Days to Cover / Short Interest Ratio -This is probably the most important metric when looking for short squeeze trades, no matter what you call it. This is the number of days it would take the short sellers to cover their position based on the average daily volume of shares traded. This is a significant ratio as it shows how “stuck” the short sellers are when they want to buy in their shares without driving up the price too much. Unfortunately for the shortsellers, the longer the number of days to cover, the bigger and longer the squeeze.

Short Percentage Increase ~ This is the percentage increase in the number of short sellers from the previous month.

The following are some heavily shorted stocks that may be worth considering.

Company	Symbol	Short Interest	Short % Change	Short Interest Ratio
Fisker Inc	FSR	47.28%	13%	3.8
Carvana Co	CVNA	40.04%	-11%	3.9
C3.ai Inc	AI	38.08%	-2%	4.3
Kohl’s Corporation	KSS	27.11%	8%	5.4
Cinemark Holdings, Inc.	CNK	26.53%	-1%	9.4
IONQ Inc	IONQ	26.22%	2%	5.4

The fourth stock on the list, Kohl’s (KSS) has over 27% of its float shorted, an increase of 8% over last month.

The short interest ratio is 5.4, which means that it would take the short sellers over five days to cover their position, based on recent average volume.

Cinemark Holdings (CNK) is another stock that is heavily shorted with over 26% now short with almost no change in short interest from the previous month.

The short interest ratio is 9, which means that it would take the short sellers over nine days to cover their position, based on recent average volume.

Just keep in mind that just because a stock has good ratios and is heavily shorted, doesn’t mean that the stock will go up, especially in a bear market. Also, stocks that are significantly shorted may be shorted for a reason.

Disclosure: Author had no positions in any of the above at the time the article was written.

Is the Corporate Gibberish Generator Better Than ChatGPT and Bard?

by Fred Fuld III

Let’s say you run a startup, and are trying to raise money. You want your offering circular to be impressive. Or maybe you are ready to go public and you need to beef up your prospectus.

Yeah, you can go to Bard or ChatGPT and create something usable.

But why do that when you can really impress potential investors with a bunch of corporate gibberish.

All you need to do is go to the Is the Corporate Gibberish Generator™, type in your company name, and click the Generate button.

A great set of gibberish will appear.

Could it be that this generator was originally created with an early form of artificial intelligence?

AI in Your Portfolio: Maximizing Returns with Artificial Intelligence

by Fred Fuld III
Author of Artificial Intelligence: What AI Is and How You Can Use It to Make Your Life Easier: A Guide to AI for Beginners

The attached PowerPoint presentation is from a speech I gave last week for the MoneyShow Virtual Expo for Accredited Investors.

So if you attended the presentation and want to refer back to what I covered, or if you were not able to attend and find out more information, you can see it on the link to the slide show below.

AI-In-Your-Portfolio

AI IN YOUR PORTFOLIO DOWNLOAD

For more information on AI, go to Artificial Intelligence: What AI Is and How You Can Use It to Make Your Life Easier: A Guide to AI for Beginners.

Stocks owned at the time of the presentation are in bold. No recommendations are expressed or implied.

The Artificial Intelligence Semi-Pure Play Stocks

by Fred Fuld III

I originally wrote about the pure play artificial intelligence stocks back in April of this year in an article called Top Five Pure Play AI Stocks.

Unfortunately, those stocks have very low market capitalizations and are very speculative. I figured it may be worthwhile to cover a couple of the semi pure plays in AI.

AI: What It Is

Artificial Intelligence, commonly referred to as AI, has become a revolutionary force in our modern world. It encompasses various technologies that enable machines to perform tasks that typically require human intelligence. From learning and reasoning to problem-solving and decision-making, AI has the potential to transform multiple aspects of our lives. In this blog post, we will delve into two intriguing applications of AI: Chat AI and image creation with DALL-E.

Chat AI: Transforming Customer Service and Beyond

One of the most widely used AI services today is Chat AI, which leverages natural language processing (NLP) and machine learning to enable machines to communicate with humans through chat interfaces. This technology has found a place in numerous settings, including customer service, healthcare, education, and business operations.

The key advantage of Chat AI lies in its ability to provide 24/7 support to customers without human intervention. Chatbots can efficiently handle frequently asked questions, offer information, troubleshoot issues, and even provide personalized support. By automating routine tasks, organizations can save costs and improve customer engagement.

Developers working on Chat AI face the challenge of creating algorithms that understand and interpret natural language while delivering appropriate responses. Achieving this requires a combination of NLP and machine learning techniques, as well as continuous training and improvement of the chat AI system.

Creating Images with AI: The DALL-E System

AI has ventured into the realm of visual arts with the creation of images using systems like DALL-E. Developed by OpenAI, DALL-E harnesses machine learning techniques, including NLP and computer vision, to generate images based on textual descriptions.

DALL-E’s name is a fusion of the renowned artist Salvador Dali and the beloved Pixar character Wall-E. The system has been trained on vast amounts of data, consisting of text-image pairs gathered from various sources, allowing it to understand the relationship between textual descriptions and their visual representations.

The potential applications of DALL-E are far-reaching. It offers avenues for artists, designers, and advertisers to streamline the creative process and bring ideas to life more quickly. By simply inputting a description, one can obtain an automatically generated image, even depicting non-existent objects or scenes.

However, as with any powerful technology, there are concerns associated with the misuse of AI image creation. Issues such as the production of fake images and the perpetuation of harmful stereotypes require careful consideration and ethical practices.

The Future of AI

Artificial Intelligence continues to shape our world, and its potential is boundless. Chat AI has already made significant strides, revolutionizing customer service and various industries by providing automated support and streamlining operations. As developers enhance algorithms and machine learning techniques, the capabilities of Chat AI will continue to expand.

In the realm of image creation, DALL-E showcases the remarkable progress AI has made. Allowing machines to generate images based on textual descriptions has implications for art, design, and advertising. While this technology opens new doors for creativity, it is crucial to approach it responsibly to mitigate potential risks.

As AI advances further, it is important for society to stay informed and engage in discussions surrounding its development and applications. By fostering a collaborative approach, we can ensure that AI technologies like Chat AI and image creation systems are used ethically and for the betterment of humanity.

Palantir Technologies (PLTR) is a software company that specializes in data analysis and artificial intelligence. Founded in 2003 by Peter Thiel, Alex Karp, and others, Palantir focuses on developing software platforms that enable organizations to integrate, analyze, and interpret large amounts of data.

Artificial Intelligence plays a significant role in Palantir’s offerings. The company’s flagship product is called Palantir Gotham, which is an AI-powered platform designed for data integration and analytics. Palantir Gotham utilizes advanced AI algorithms to extract insights from complex and diverse data sources, helping organizations make informed decisions and gain a deeper understanding of their data.

The AI capabilities of Palantir Gotham enable it to handle vast amounts of structured and unstructured data, including text, images, and sensor data. The platform incorporates machine learning and natural language processing techniques to uncover patterns, detect anomalies, and generate predictive models. By leveraging AI, Palantir Gotham provides users with powerful tools for data exploration, visualization, and collaboration.

Palantir also offers another product called Palantir Foundry, which is an AI-driven data integration and management platform. Foundry enables organizations to ingest, transform, and analyze data from various sources, making it accessible and actionable. Through AI technologies, Foundry automates data processing tasks, enhances data quality, and provides intelligent recommendations for data governance and security.

In addition to their software products, Palantir has developed AI applications for various industries and sectors. They have worked with government agencies, law enforcement, and intelligence communities, providing AI-powered solutions for data-driven decision-making, risk analysis, and security operations. Palantir’s AI capabilities have also found applications in healthcare, finance, and manufacturing, among other sectors, where they help organizations optimize processes, detect fraud, and improve operational efficiency.

However, it’s worth noting that Palantir’s use of AI has also raised concerns regarding data privacy, ethics, and potential biases in decision-making. As with any AI technology, responsible development, transparency, and accountability are essential considerations to mitigate these concerns.

Overall, Palantir utilizes AI as a core component of its software platforms and applications, enabling organizations to harness the power of data for improved decision-making and operational efficiency.

The stock trades at a fairly high forward price to earnings ratio of 65, however, the company has no long term debt. Quarterly revenue growth year-over -year increased by 17.7%, and the long term annual growth estimate of earnings per share over the next five years is 73%.

Verint Systems (VRNT) is a well-established software company that provides solutions for customer engagement, workforce optimization, and security intelligence. While Verint is not primarily known as an artificial intelligence company, they have integrated AI technologies into some of their offerings to enhance their capabilities.

Verint’s AI-powered solutions are designed to help organizations extract valuable insights from large volumes of data, automate processes, and improve decision-making. They utilize machine learning, natural language processing, and other AI techniques to analyze and interpret data from various sources.

In the customer engagement domain, Verint offers AI-driven solutions for voice and text analytics. These solutions can analyze customer interactions, such as calls, emails, chat conversations, and social media posts, to identify sentiment, extract key insights, and detect patterns. By leveraging AI, Verint enables organizations to understand customer behavior, optimize customer service operations, and personalize customer interactions.

Verint also provides AI-powered workforce optimization solutions, which help organizations manage and optimize their workforce performance. These solutions leverage AI algorithms to analyze employee data, identify training needs, and provide recommendations for improving workforce efficiency and productivity.

In the realm of security intelligence, Verint incorporates AI technologies to enhance their offerings. Their security solutions utilize AI-based video analytics to detect and alert on suspicious activities, automate the monitoring of security cameras, and enable real-time incident response.

While Verint Systems is not exclusively an AI-focused company, they have recognized the value of incorporating AI technologies into their solutions to enhance their capabilities and provide value to their customers. By leveraging AI, Verint aims to help organizations improve customer engagement, optimize workforce performance, and enhance security intelligence.

The stock trades at a very reasonable 11.7 times forward earnings, and the quarterly earnings growth year-over-year was 61.2%. The long term annual growth estimate of earnings per share over the next five years is 9.75%.

If you want to learn more about artificial intelligence, you should get the book Artificial Intelligence: What AI Is and How You Can Use It to Make Your Life Easier: A Guide to AI for Beginners, available in both paperback and Kindle.

Disclosure: Author owns PLTR and VRNT. This article contains Amazon affiliate links whereby I would receive a small commission on any sale through those links at no additional cost to you.

Top 5 Pure Play AI Stocks

By Fred Fuld III

You’ve seen it on TV, you’ve read about it on news websites. Artificial Intelligence, commonly referred to as AI, is now the hottest industry. Stocks that are involved in this industry are taking off.

I originally wrote about a form of artificial intelligence back in October of 2021 in an article called The Future of Artificial Intelligence: Can You Invest In It Now?

So you may be wondering what companies are the purest plays.

WHAT AI IS

Artificial Intelligence, or AI for short, refers to the ability of machines to perform tasks that typically require human intelligence, such as learning, reasoning, problem solving, and decision-making. AI algorithms are designed to analyze data, recognize patterns, and make predictions or recommendations based on that analysis.

In other words, AI is a way to teach machines to perform tasks that would normally require human intelligence, and to improve their performance over time based on the data they analyze. This technology has the potential to revolutionize many aspects of our lives, from healthcare to transportation to entertainment. AI is even being used to write articles and books.

WHAT CHAT AI IS

One of the most popular types of AI services is Chat AI.

Chat AI refers to the use of artificial intelligence technologies, such as natural language processing (NLP) and machine learning, to enable machines to communicate with humans via chat interfaces, such as chatbots or virtual assistants.

Chat AI is used in a variety of settings, such as customer service, where chatbots can be used to answer frequently asked questions, provide information, or help customers troubleshoot issues. Chat AI can also be used in healthcare to provide personalized support and advice, in education to assist with learning, and in business to streamline operations and improve customer engagement.

The key advantage of Chat AI is that it enables organizations to provide 24/7 support to their customers, without the need for human intervention. Additionally, Chat AI can help organizations save costs by automating routine tasks and reducing the need for human labor.

To enable effective Chat AI, developers must ensure that the algorithms are capable of understanding and interpreting natural language, as well as providing appropriate responses to user queries. This requires a combination of NLP and machine learning techniques, as well as ongoing training and improvement of the chat AI system.

Overall, Chat AI is an increasingly popular technology that has the potential to transform the way we interact with machines and automate routine tasks in various industries.

CREATING IMAGES WITH AI

Yes, artificial intelligence is now being used to create images, such as book covers, logos, album covers, and many other purposes. You just need to type in a simple description, and a picture will automatically be created. One of the most popular AI image services is called DALL-E.

DALL-E is an artificial intelligence system developed by OpenAI that is capable of generating images from textual descriptions. The name “DALL-E” is a combination of the artist Salvador Dali and the Pixar character Wall-E.

The DALL-E system uses a combination of machine learning techniques, including natural language processing and computer vision, to interpret textual descriptions and generate corresponding images. It is capable of creating images of objects and scenes that do not exist in the real world, such as a teapot made of giraffe or a snail-shaped harp.

THE BIG PLAYERS

The DALL-E system was trained on a dataset of text-image pairs, which enabled it to learn the relationship between textual descriptions and their corresponding visual representations. The system was trained on a massive amount of data, including images from the internet and text descriptions from a variety of sources.

The potential applications of DALL-E are numerous, including in the fields of art, design, and advertising. It has the potential to streamline the creative process and help artists and designers bring their ideas to life more quickly and easily. However, there are also concerns about the potential misuse of this technology, such as the creation of fake images or the propagation of harmful stereotypes.

First, let’s get the large stocks out of the way. There are many companies involved in AI, ranging from startups to large corporations. However, some of the biggest companies involved in AI are:

Google (GOOG) (GOOGL) is known for its search engine, but it’s also heavily invested in AI, with products like Google Assistant, Google Photos, and Google Translate all utilizing machine learning.

Amazon (AMZN) is using AI in many areas, such as its recommendation engine, its Alexa voice assistant, and its Amazon Go stores, which use computer vision to enable a checkout-free shopping experience.

Microsoft (MSFT) has been investing heavily in AI and has developed several AI-powered products, including Cortana, Skype Translator, and Microsoft Cognitive Services.

IBM (IBM) has a long history of developing AI technologies, and its Watson platform is one of the most well-known examples of AI in action.

Meta/Facebook (META) uses AI in a variety of ways, including facial recognition technology for tagging photos and content moderation.

Apple (AAPL) has been incorporating AI into many of its products, including Siri and Face ID.

NVIDIA (NVDA) is a leading manufacturer of GPUs, which are essential for training and running AI models.

Baidu (BIDU) is a Chinese search engine that is heavily investing in AI, with projects ranging from self-driving cars to voice recognition.

Tesla (TSLA) is using AI in its autonomous driving technology and is working to develop a fully self-driving car.

Alibaba (BABA), the Chinese e-commerce company, is investing in AI to improve its recommendation engine and other areas of its business.

THE PURE PLAYS

Now let’s get to the purer plays in artificial intelligence.

C3.AI

C3.ai, Inc. (AI) is a software company, located in Redwood City, California, that provides enterprise AI solutions for a variety of industries, including energy, healthcare, and finance. The company was founded in 2009 by Dr. Thomas M. Siebel, who is also the CEO of the company.

Before founding C3.ai, Dr. Siebel was the founder and CEO of Siebel Systems, a leading enterprise software company that was acquired by Oracle Corporation in 2006. After the acquisition, Dr. Siebel focused on developing AI-based solutions for the enterprise market and founded C3.ai.

Initially, C3.ai focused on developing predictive maintenance and energy management solutions for the energy industry. The company’s first product, C3 Energy Management, was designed to help utilities optimize their energy generation and distribution systems using machine learning algorithms.

Over time, C3.ai expanded its focus to other industries, including healthcare, financial services, and manufacturing. The company’s current product offerings include C3 AI Suite, which is a platform that enables organizations to develop and deploy AI applications, and C3.ai Ex Machina, which is an AI-powered data science platform for data scientists and developers.

C3.ai has received funding from several prominent investors, including Breyer Capital, TPG Growth, and the Rise Fund. In December 2020, the company went public on the New York Stock Exchange under the ticker symbol “AI,” raising $651 million in its initial public offering.

The stock has a market capitalization of $2.45 billion. This debt-free company has $6.76 in cash per share.

SOUNDHOUND AI

SoundHound AI, Inc. (SOUN) is a Silicon Valley-based technology company that specializes in developing sound recognition and voice-enabled AI solutions. The company was founded in 2005 by Dr. Keyvan Mohajer, who is also the CEO of the company.

Initially, the company started as a music recognition app called “Midomi,” which allowed users to hum or sing a song, and the app would identify the song. Later on, the company expanded its focus to voice-enabled AI technology and changed its name to SoundHound Inc.

In 2015, SoundHound Inc. launched its flagship product, Hound, which is an AI-powered voice assistant. Hound uses a natural language processing (NLP) technology that enables users to speak complex and specific queries in a conversational manner. The Hound voice assistant is available as a mobile app and can be integrated into other devices and applications.

In addition to Hound, SoundHound AI, Inc. also offers a suite of AI-based products and services, including sound recognition technologies for speech-to-text and music identification, and voice-enabled AI solutions for automotive, hospitality, and other industries.

The company has received funding from several prominent investors, including NVIDIA, Samsung, and Tencent Holdings. By 2021, SoundHound AI, Inc. had raised over $250 million in funding.

SoundHound has a market cap of $580 million. The company is debt-free and quarterly sales increased by over 79% year-over-year.

BIGBEAR.AI

BigBear.ai Holdings, Inc. (BBAI) is a technology company that develops and provides artificial intelligence (AI) solutions for defense and intelligence organizations, as well as for commercial customers. The company was founded in 2018 and is headquartered in Reston, Virginia.

BigBear.ai’s technology solutions use AI and machine learning to help customers make sense of large and complex data sets, as well as to automate decision-making processes. The company’s AI-driven solutions are designed to improve situational awareness, increase operational efficiency, and support decision-making across a range of industries and applications.

The company’s solutions cover a range of capabilities, including computer vision, natural language processing, and data analytics. BigBear.ai’s solutions are used in a variety of applications, such as intelligence analysis, threat detection, predictive maintenance, and supply chain optimization.

BigBear.ai has a broad customer base that includes government agencies and commercial customers in various industries. The company has received funding from several venture capital firms, including Riverside Partners, Chart National, and Blu Venture Investors.

In 2021, BigBear.ai announced that it had entered into a definitive agreement to merge with GigCapital4, a special purpose acquisition company (SPAC), in a deal that valued the combined company at $1.57 billion. The merger was completed in August 2021, and the combined company is now publicly traded on the NASDAQ under the ticker symbol “BBAI” as “BigBear.ai”.

This debt-free company has a market cap of $458 million.

T STAMP

T Stamp Inc. (IDAI) is an identity authentication software company that uses artificial intelligence (AI) to develop solutions for government, enterprise partners, and peer-to-peer markets in the United States, the United Kingdom, and Malta.

T Stamp’s AI-powered solutions leverage biometric science, cryptography, and data mining to deliver identity and trust predictions, protect sensitive user information, and extend the reach of digital services through global accessibility. The company’s solutions include converting biometric and other identifying data into an Irreversibly Transformed Identity Token that serves as a secure tokenized identity. T Stamp also offers solutions for privacy and data protection, document validation, identity verification, geolocation, duplicate detection, and biometric capture.

T Stamp’s solutions serve a variety of industries, including banking/fintech, humanitarian and development services, KYC/AML compliance, government and law enforcement, P2P transactions, social media, and sharing economy, and real estate, travel, and healthcare. The company was incorporated in 2016 and is headquartered in Atlanta, Georgia.

Overall, T Stamp’s mission is to provide secure and scalable identity authentication solutions that leverage AI and advanced technologies to protect user privacy and combat identity fraud.

This is a microcap stock with an extremely low market cap of $18 million, and should therefore be considered extremely speculative.

MARPAI

Marpai, Inc. (MRAI) is a software company that specializes in developing and deploying artificial intelligence (AI) systems for the enterprise market. The company was founded in 2016 by a team of experienced entrepreneurs and AI researchers, including CEO and Co-founder Mark Sears.

Marpai’s platform, called “Cortex,” is designed to help businesses leverage AI to automate processes, extract insights from data, and improve decision-making. Cortex uses advanced machine learning algorithms to analyze large amounts of data and provide actionable insights to users.

The company has received funding from prominent venture capital firms, including Bain Capital Ventures, Crosslink Capital, and SVB Capital, among others. In May 2021, Marpai announced that it had raised $30 million in a Series A funding round led by M12, Microsoft’s venture fund, with participation from other investors.

Marpai has a range of customers across different industries, including finance, healthcare, and retail. The company’s solutions are used for a variety of applications, such as fraud detection, customer service automation, and supply chain optimization.

Overall, Marpai’s mission is to democratize AI and make it more accessible to businesses of all sizes, by providing a scalable and user-friendly platform for deploying AI solutions.

The stock is debt-free and quarterly revenue growth year-over-year was 28.8%. This is another microcap stock with an extremely low market cap of $40 million, and should therefore also be considered extremely speculative.

AI SUMMARY

According to Fortune Business Insights, “The Artificial Intelligence market is projected to grow from $387.45 billion in 2022 to $1394.30 billion by 2029, at a CAGR of 20.1%.”

Just remember, that there are many ups and downs in new industries, and all the pure play stocks in this list should be considered speculative. Remember, no recommendations are expressed or implied.

Disclosure: Author didn’t own any of the above at the time the article was written, although may be making purchases in the near future. This article contains Amazon affiliate links whereby I would receive a small commission on any sale through those links at no additional cost to you.

NYSE Stocks with the Highest Short Interest

by Fred Fuld III

A short squeeze is a phenomenon that occurs in financial markets when investors who have sold shares of a stock short (i.e., betting that the stock price will fall) are forced to buy those shares back at a higher price than they expected. This can happen when the stock’s price rises sharply, causing losses for short sellers who need to buy the stock to cover their position and limit their losses.

As more and more short sellers try to buy the stock to close out their positions, this increased buying activity can drive the stock price even higher, creating a feedback loop that can lead to a rapid and dramatic increase in price. This can create a challenging situation for short sellers, who may be forced to buy back the stock at a loss, or risk even greater losses if the stock continues to rise. A short squeeze can also create opportunities for long investors who have purchased the stock, as they may be able to sell their shares at a higher price to short sellers looking to cover their positions.

On August 22, 2022, I posted an article about meme related short squeeze stocks, and pointed out Bed Bath and Beyond (BBBY) after it had its big run-up. In exactly one week after the article was posted, the stock jumped by more than 43%.

Another stock that was mentioned was Intercept Pharmaceuticals, Inc. (ICPT), which increased by almost 5% in just two days.

The stock with the biggest short ratio (days to cover), at 14.3 back then, was Heron Therapeutics, Inc. (HRTX). It rose by 9.5% in three days.

When you short a stock, it means that your goal is to make money from a drop in the price of a stock. Technically, what happens is that you borrow shares of a stock, sell those shares, then buy back those shares at a hopefully lower price so that those shares can be returned. This all happens electronically, so you don’t actually see all the borrowing and returning of shares; it just shows up on your screen as a negative number of shares.

Short sellers can be profitable, but sometimes when the stock moves against them, and begins to rise, the short sellers jump in right away to buy shares to cover their positions, creating what is called a short squeeze. When a short squeeze takes place, it can cause the share prices to increase fast and furiously. Any good news can trigger the short squeeze.

Some traders utilize this situation by looking for stocks to buy that may have a potential short squeeze. Here is what a short squeeze trader should take into consideration:

Short Percentage Increase ~ This is the percentage increase in in the number of short sellers from the previous month.

The following are some heavily shorted tech stock that may be worth considering.

Company	Ticker	Short % of Float	Short % Change	Short Interest Ratio
Silvergate Capital Corp	SI	76.92%	-6%	1.2
Carvana Co	CVNA	52.82%	0%	1.8
Wayfair Inc	W	33.65%	0%	4.2
Big Lots, Inc.	BIG	32.44%	-1%	7
C3.ai Inc	AI	27.31%	5%	1.4
Fubotv Inc	FUBO	26.57%	-27%	3.2
Virgin Galactic Holdings	SPCE	25.92%	9%	5.9
Bakkt Holdings Inc	BKKT	24.53%	6%	4.3
AMC Entertainment	AMC	24.39%	1%	3.7
Cinemark Holdings, Inc.	CNK	23.73%	0%	7.6

The third stock on the list, Wayfair (W) has over 33% of its float shorted, with no change in short interest over last month.

The short interest ratio is 4.2, which means that it would take the short sellers over 4 days to cover their position, based on recent average volume.

Just keep in mind that just because a stock has good earnings ratios and is heavily shorted, doesn’t mean that the stock will go up, especially in a bear market. Also, stocks that are significantly shorted may be shorted for a reason.

Disclosure: Author didn’t own any of the above at the time the article was written.

Top Artificial Intelligence Stocks

by Fred Fuld III

So what is artificial intelligence?

It is perceiving, synthesizing, and inferring information demonstrated by machines, as opposed to intelligence displayed by humans.

It usually involves the use of big data, which is basically an enormous amount of information that is too large or complex to be dealt with by traditional database software.

According to Fortune Business Insights, the global AI market size is projected to grow from $387.45 billion in 2022 to $1394.30 billion in 2029 at a compound annual growth rate of 20.1% in the forecast period.

Precedence Research said that the artificial intelligence market size is expected to be over $1.5 trillion by the year 2030.

AI has many uses including deep learning, software development, advertising and the media.

In case you haven’t head by now, AI can be used to create an article from just a simple one sentence request.

You can see an example of this at OpenAI ChatGBT.

Here is a poem example:

In addition, OpenAI can create images and art from a simple suggestion.

So how does an investor participate?

All the major tech companies use AI in some fashion, but there are a few purer plays. Here are a few stocks that utilize big data and artificial intelligence in a big way.

• C3.ai (AI)

• Palantir (PLTR)

• MongoDB (MDB)

• Palo Alto Networks (PANW)

• Verint Systems Inc. (VRNT)

C3.ai (AI), which has a great stock ticker symbol, is probably the purest play in the AI arena. The company produces AI software with multiple commercial uses:

– energy management

– predictive maintenance

– fraud detection

– cyber security

– anti-money laundering

– inventory optimization

– predictive CRM

C3.ai has a $1.86 billion market cap and unfortunately is currently generating negative earnings. Quarterly revenue growth is up 7% year over year. The company is debt free and has $8.98 in cash per share.

Please note that the stock has doubled during the last month.

Hopefully , you can add some intelligence to you portfolio.

Disclosure: Author owns PLTR.

The Future of Artificial Intelligence: Can You Invest In It Now?

by Fred Fuld III

Artificial intelligence, also known as AI, is intelligence demonstrated by machines, as opposed to the natural intelligence displayed by humans.
AI applications include advanced web search engines, recommendation systems, speech recognition, self-driving cars, and much more. Now AI is involved in the areas of writing, both fiction and non-fiction, and graphics.

This Woman Does Not Exist

First, let’s start out with art. The woman that you see above was created with artificial intelligence (and a little input from me). This person does not exist in real life.

I don’t consider myself an artist, but with the help of a website called ArtBreeder.com, I was able to adjust such things as the ethnicity, eye color, hair color, happiness, age, and many other features.

I could have even added eyeglasses, different earrings, makeup, and various aspects of the picture itself, such as color hues, brightness, and sharpness.

And that is only the beginning. I could have even merged her image with another image.

The best part is that you can try it out for free.

Let me give you one more example. I took the image of Benjamin Franklin, from the $100 bill, and made him younger with some facial hair.

Notice the difference? Incredible technology. You should give it a try.

Who Wrote This?

Now I’m going to give you one more example of AI, this time in the form of writing. You can actually use AI to write non-fiction articles and even fiction.

Check out the following in italics. It is an article that I had a website called ShortlyAI.com write, that based on a starting informative sentence, will write a passage or article for you.

Read it and see if you think a software program could have written this.

It is amazing what artificial intelligence can do now. Websites created by researchers have been able to write text and create pictures that seem like a person wrote them. This is the future of AI and it is amazing what we can learn in this new point in history.

Artificial intelligence can perform amazing tasks, from writing articles, pictures, music, etc. The future of AI will bring us closer to robots taking over many jobs from humans. In the future artificial intelligence may be capable of all these things without any help from a human being.

This futuristic idea is not new and journalists have been talking about this for years. The problem with all this new technology is that it may take away certain jobs from humans and make them obsolete. So robots and computer programs could replace humans at some point in the future.

The AI industry has grown rapidly in the past few years and people are still trying to figure out how to use it correctly. The things that artificial intelligence can do today are amazing and we will look back on this time as the beginning of a new revolution.

The future of AI will also bring us to the point where AI will think for itself, not just work on specific tasks. AI is able to learn and grow and help humans with projects. AI will be able to do things by itself that we cannot even imagine at this time.

Artificial intelligence will continue to get better at more tasks, from writing articles, pictures, music, and other media.

Not bad for a computer. Obviously, it could use a little tweaking and some additional information, but it should give you a good idea of what AI can do. Give it a try.

How to Invest in AI

Unfortunately, there are not really any pure plays in the artificial intelligence arena. Most of the major companies are involved in AI in some way. These stocks include:

Alphabet Inc. (GOOG)
Apple Inc. (AAPL)
Amazon (AMZN)
Twilio Inc. (TWLO)
ServiceNow, Inc. (NOW)
NVIDIA Corporation (NVDA)
QUALCOMM Incorporated (QCOM)
International Business Machines Corporation (IBM)
Splunk Inc. (SPLK)
DocuSign, Inc. (DOCU)
CrowdStrike Holdings Inc. (CRWD)
and many others.

One of the closest pure plays is C3.ai, Inc. (AI), with the appropriate stock ticker symbol. The company is an enterprise artificial intelligence software company with customers around the world. This $4.7 billion market cap company is currently generating negative earnings. Revenues for the latest reported year rose by over 17%. The company has no long term debt. 18% of the float is short.

Another pure play is Remark Holdings (MARK), markets its AI-based products and services under the Remark AI brand in the United States; and under the KanKan brand in China. The stock has a market cap of $228 million. Revenues for the latest reported year rose by over 100%. The short percent of float is 12%.

Maybe one of these days, AI will come up with a way of beating the stock market.

Disclosure: Author owns AAPL, AMZN at the time the article was written.

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Interview with Brent Wilsey about Stocks and Artificial Intelligence

The following informative interview was provided by Brent Wilsey, a Registered Investment Advisor who has spent over 40 years in the industry. He is the head of Wilsey Asset Management in San Diego, and has hosted the “Smart Investing Show” on KFMB Radio for the last 15 years. He has appeared on CNN, CNBC, Bloomberg, and Fox Business News.

He discusses Artificial Intelligence and how companies are utilizing this technology. Stocks that are discussed include:

P. Morgan Chase (JPM)
Boeing (BA)
Papa John’s (PZZA)

He also talks about Bitcoin, the future of the stock market, and good and bad sectors.

To stream the interview, click:

HERE

You can download as an mp3 by right-clicking here and choosing “save as.”

More information about Wilsey Asset Management can be found at:

Wilsey Asset Management

Smart Investing with Brent & Chase Wilsey Radio Show

Wilsey Smart Investing Workshops

All opinions are those of Brent Wilsey, and do not represent the opinions of WStNN.com or Stockerblog.com or the interviewer. Neither this website nor the interviewer nor the interviewee are rendering tax, legal, or investment advice in this interview. All information is provided for education and general information only.