Short sellers targeting Tesla (NASDAQ: TSLA) and MicroStrategy (NASDAQ: MSTR) have faced significant losses over the past two months as these stocks continued to hit new yearly highs. Even after brief price corrections, both stocks have resumed their upward trajectory.

For traders seeking consistent short-selling opportunities in 2025, identifying overvalued stocks with high short interest and low float can provide significant profit potential. These conditions, coupled with uncertainty surrounding the Federal Reserve’s 2025 interest rate policy, create an ideal environment for speculative trading.

Platforms like TradeZero offer tools tailored for short sellers, including real-time data on short interest and float metrics, competitive rates for borrowing hard-to-borrow shares, and advanced order routing for optimal execution during market volatility. Below are three stocks with notable short-selling potential for 2025.

1. MARA Holdings (NASDAQ: MARA)

MARA Holdings, one of the largest Bitcoin mining companies, has become a key target for short sellers. With a high short interest of 20%, MARA’s volatile stock dropped 25% over the past month, settling at $19.95 per share. Despite this decline, the company’s $6.8 billion market cap and price-to-earnings (P/E) ratio of 39 signal potential overvaluation.

MARA’s reliance on Bitcoin’s performance amplifies its risk profile. As of early December, the company held 40,435 BTC, supported by $1.1 billion in Bitcoin acquisitions via convertible notes. However, the high operational costs of mining, compared to asset-holding strategies like MicroStrategy’s, add pressure to its valuation.

Short sellers are betting that MARA’s volatility will persist, particularly if Bitcoin’s price experiences further fluctuations. Current analyst ratings from The Wall Street Journal show a median price target of $27.50, with a lower bound of $23—both above the current price.

2. Symbotic Inc. (NASDAQ: SYM)

Symbotic, an AI-driven automation and logistics company, has experienced significant price swings in 2024. After hitting a yearly low of $17 in September, the stock rallied near $40 in November before settling at $25.20. With nearly 40% of SYM’s float currently shorted, the stock remains highly contentious.

Valuation concerns have been compounded by legal and operational challenges. Symbotic recently delayed its FY24 Form 10-K filing and is facing a securities class-action lawsuit over alleged misleading financial reporting. Additionally, its acquisition of OhmniLabs on December 12 has added to the mix of bullish and bearish factors influencing its stock.

The stock’s future could depend heavily on policy shifts under the incoming Trump administration. If policies favor supply chain modernization, tax cuts, and revitalization of domestic manufacturing, Symbotic could see another rally, potentially pushing its stock back above $50.

3. C3.ai (NASDAQ: AI)

C3.ai has become a focal point for traders speculating on the AI sector’s sustainability. After hitting a yearly high of $42.94, C3.ai’s stock currently trades at $35.82, up 24% year-to-date. However, its lack of profitability has attracted significant short interest, with 19% of its float shorted as of November.

C3.ai’s business model focuses on modular AI application development for enterprises, with a consumption-based pricing model introduced in 2022. While the company reported a 29% year-over-year revenue increase to $94.3 million in October, it continues to post net losses, with the latest at $65.97 million.

The company’s strong cash balance of $730.4 million provides some runway, but its inability to achieve profitability remains a critical factor driving short-selling activity. Analysts from The Wall Street Journal have rated the stock as a hold, with a median price target of $36.15, aligning closely with its current price.

Key Takeaways

These three stocks—MARA Holdings, Symbotic, and C3.ai—each present unique short-selling opportunities in 2025. Their high volatility, contentious valuations, and market dynamics make them prime candidates for traders looking to capitalize on price corrections. However, traders should approach these opportunities with caution, leveraging platforms like TradeZero for advanced tools and risk management strategies.

As always, thorough research and disciplined execution are essential to successfully navigating the risks and rewards of short-selling in a volatile market environment.