Short selling has become a broader discussion in 2021 after retail investors from Reddit's WallStreetBets sent a group of heavily shorted stocks higher earlier this year.
One of the main opponents to the act of short selling is Elon Musk because his company, Tesla (TSLA) - Get Report, is one of the most heavily shorted stocks by volume. Tesla's short selling has increased to a record $47 billion by the end of January. Tesla's short sellers lost $38 billion in the past year.
Real Money's Bob Lang explained why short selling is such an important part of the stock market.
Jim Cramer also shared what he learned from his experiences short selling and why he believes it has a function.
Here are some of the most shorted stocks as of Feb. 9 by their short interest.
1. GameStop | Short Interest 41.95%
The Reddit WallStreetBets user known as "Roaring Kitty," who began the GameStop (GME) - Get Report gamma squeeze, is being sued for allegedly misrepresenting himself as an amateur investor. "Roaring Kitty" user's real name is Keith Gill and will be testifying before Congress Thursday.
2. Tanger Factory Outlet | Short Interest 40.86%
3. iSun Inc. | Short Interest 39.72%
Peck Company Holdings changed its name this past month to iSun Inc. iSun also secured a $2.2 million contract for solar EV charging and energy infrastructure.
4. Ligand Pharmaceuticals | Short Interest 38.91%
5. Koss Corporation | Short Interest 38.16%
6. Triterras Inc. | Short Interest 37.73%
A class-action lawsuit was filed Wednesday against Triterras (TRIT) on behalf of investors who bought Triterras stock between August and December of 2020.
7. GSX Techedu | Short Interest 36.31%
8. Clovis Oncology | Short Interest 35.78%
9. National Beverage Corp. | Short Interest 34.91%
10. Accelerate Diagnostics | Short Interest 34.73%
11. Gogo Inc. | Short Interest 33.49%
12. SunPower Corporation | Short Interest 31.93%
13. Luminar Technologies | Short Interest 31.35%
14. Rocket Companies | Short Interest 31.33%
15. Tootsie Roll | Short Interest 31.10%
All stock short interests and rankings were pulled from FactSet.