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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};be("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat(Vn)),notifLabel:document.querySelector(".".concat($n))};t.notifDropdown&&ro(e,t)}))}()}};]]>Wajeeh KhanMon, Jul 28, 2025, 8:54 PM 2 min readBullish - green stock market chart with arrow up day trade by Quality Stock Arts via ShutterstockStem (STEM) shares rallied more than 25% on Monday as investors ran into the AI-driven clean energy solutions company amid growing speculation of a short squeeze.With a short interest exceeding 18% of the float, a continued rally in STEM shares in recent weeks has caught many bearish investors off guard, forcing some to cover positions, further adding fuel to the upside.Warren Buffett Warns Inflation Turns Business Into ‘The Upside-Down World of Alice in Wonderland’ But Weeds Out ‘Bad Businesses’Why GOOGL Stock May Be the Market’s Next Big WinnerAlphabet Posts Lower Free Cash Flow and FCF Margins - Is GOOGL Stock Overvalued?Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today!Including today’s surge, Stem stock is up over 200% versus its low set in the final week of June.Despite an explosive move to the upside over the past four weeks, STEM stock may still be worth owning as the short squeeze could escalate further in the days ahead.The Houston-headquartered firm currently has more than 18% of its float sold.Therefore, any sustained upward momentum could force short sellers to buy back shares, driving prices even higher from current levels.Moreover, the recent rally has pushed Stem shares well above all of their major moving averages, presenting somewhat of a compelling technical case to own them as well.www.barchart.comFor serious, long-term investors, however, STEM shares remain a high-risk proposition given the company’s fundamentals remain rather thin.The NYSE-listed firm continues to record significant losses, with over $800 million reported as of December 2024.Moreover, the recent reverse stock split and dilution through convertible notes raise concerns about shareholder value as well.Stem stock investors should, therefore, practice caution as short squeezes, while often lucrative, tend to be short-lived as they’re driven by emotion, not fundamentals. Therefore, once the hype fades, STEM stock could retrace just as quickly, leaving late buyers exposed to steep losses.Investors should prefer staying on the sidelines in STEM shares amidst the ongoing short squeeze also because Wall Street doesn’t currently view them favorably for the back half of 2025.According to Barchart, the consensus rating on Stem stock currently sits at “Hold” only with the mean target of about $11 indicating potential downside of roughly 40% from here.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,414.75 +8.75 (+0.14%)Dow Futures44,855.00 +39.00 (+0.09%)Nasdaq Futures23,503.00 +51.00 (+0.22%)Russell 2000 Futures2,261.70 +8.10 (+0.36%)VIX15.98 +0.95 (+6.32%)Gold3,320.40 -3.60 (-0.11%)PortfolioSign in to access your portfolioSign inTop gainersNEGG Newegg Commerce, Inc. 56.19 +17.11 (+43.78%)SANM Sanmina Corporation 120.76 +22.42 (+22.79%)CVLT Commvault Systems, Inc. 193.27 +29.84 (+18.26%)AMKR Amkor Technology, Inc. 25.08 +3.85 (+18.13%)PII Polaris Inc. 57.81 +8.33 (+16.84%)Top losersNVO Novo Nordisk A/S 53.94 -15.06 (-21.83%)STEM Stem, Inc. 15.17 -3.74 (-19.78%)HRI Herc Holdings Inc. 123.61 -26.27 (-17.53%)EXEL Exelixis, Inc. 36.94 -7.45 (-16.78%)QS QuantumScape Corporation 9.28 -1.70 (-15.48%)Most activeSOFI SoFi Technologies, Inc. 22.40 +1.38 (+6.57%)NVDA NVIDIA Corporation 175.51 -1.24 (-0.70%)LCID Lucid Group, Inc. 2.5600 -0.2300 (-8.24%)NVO Novo Nordisk A/S 53.94 -15.06 (-21.83%)AMD Advanced Micro Devices, Inc. 177.44 +3.78 (+2.18%)Earnings eventsTrending tickersSOFI SoFi Technologies, Inc. 22.40 +1.38 (+6.57%)NVO Novo Nordisk A/S 53.94 -15.06 (-21.83%)PANW Palo Alto Networks, Inc. 193.84 -10.66 (-5.21%)SBUX Starbucks Corporation 92.96 -0.71 (-0.76%)V Visa Inc. 351.29 -4.18 (-1.18%)Top economic events