Chinese microchip producer Nano Labs (NA) may be the next big short squeeze, according to data from Fintel. The short analysis platform reports that NA stock is currently at the top of its short squeeze likelihood leaderboard, with an overall score of 98.39 out of 100. Nano Labs has been in the spotlight recently after announcing that it will be accepting Bitcoin (BTC-USD) payments. However, Fintel’s data suggests that its recent surge could be due to short squeeze speculation.
What’s Happening with Nano Labs Stock Today?
While trading has been volatile over the past week, Nano Labs stock has enjoyed a week of mostly steady growth. This trend hasn’t slowed down today. As of this writing, NA stock is up 15% for the day and looks primed to continue rising, maintaining the winning streak it has been on for the past five days, despite some quick declines.
When a company displays quick growth accompanied by rising short interest, it is easy to wonder if a short squeeze is taking place. According to Fintel’s findings, it is definitely likely. The platform calculated Nano Labs’ high short squeeze score using a “proprietary multi-factor model” that considers factors like the percentage of a company’s publicly traded shares (float) that have been sold short, known as the short interest as a percantage of float, as well as short borrow fee rates.
Current data shows that short interest accounts for more than 13% of the stock’s float, and short sellers have less than two days to cover their positions. Additionally, the number of NA shares available to short has been low all week, dipping to zero yesterday. The share count has ranged between 5,000 and 7,000 all day, which still suggests that short interest in Nano Labs is high.
Is a Nano Labs Short Squeeze Coming?
While it is clear that Nano Labs is heavily shorted, shares haven’t risen enough yet for it to look like a short squeeze. Part of the recent growth could be due to the Bitcoin payment news, which would be a likely catalyst for most companies. A key short squeeze indicator will be if the percentage of Nano Labs’ float being sold short continues to rise over the coming days.
