What it is
Short interest represents the aggregate number of shares that investors have borrowed and sold, anticipating a price decline, with the intention of buying them back later at a lower price to return to the lender. It is expressed as a raw number of shares or as a percentage of the company's total shares outstanding. High short interest indicates significant bearish sentiment towards a stock.
Investors often monitor short interest data, typically released bi-monthly, as a potential indicator of future price movements. A rising short interest suggests increasing bearish bets, which could precede a price drop if the shorts are correct. Conversely, extremely high short interest can sometimes lead to a short squeeze if positive news forces short sellers to cover their positions, buying shares and pushing prices up.
Why it matters
High short interest can signal strong negative sentiment or set the stage for a short squeeze, both of which can lead to significant price volatility.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice