Surging April returns (NDX +14%, S&P +10%) pushed dozens of stocks, primarily in Tech and Communications, above the critical 70 squeeze score threshold.

Communications squeeze names are mostly Media stocks, like Skydance (PSKY), where short interest spiked during selloffs and remained high through the subsequent rally.

The Trade Desk (TTD) faces its first squeeze risk in a year due to a 50% short interest surge in March fueled by advertising and competition concerns and the war.

With the market at all-time highs—the NDX surged 14% and the S&P 500 rose 10% in April—a significant number of stocks have posted returns of 15% to 25%.

In this environment, the Short Squeeze Score—a function of crowded shorts data (which moves slowly based on short interest) and recent returns—is flashing red.

When price returns are positive, short sellers face mounting losses, causing the Short Squeeze Score to climb.

With dozens of stocks generating outsized returns, we are seeing a near-record number of stocks with Squeeze Scores above the critical level of 70.

Specifically, out of these 25 names—representing 5% of the monitored universe—10 are Technology names, 7 are Communications, 3 are Consumer, and 5 are Financials.

While Financials are rarely traditional short squeeze risk candidates, the Communications sector currently warrants closer inspection.

Focusing specifically on the Communications names in high short squeeze risk territory, the short interest analytics reveal an interesting trend. Their risk profile wasn't triggered by a sudden April spike; rather, their short interest spiked during the geopolitical sell-off earlier in the month and remained elevated even as the market rallied.

These stocks are predominantly concentrated in Media, except for two FinTech names.

In the case of Skydance (PSKY), short interest rose in March during the sell-off. The subsequent rally has now created a textbook Battleground Stock scenario.

The March volatility was tied to a potential deal with Warner Bros. Discovery; as it is a cash transaction, there is no traditional merger arbitrage opportunity involving share exchanges.

Initial sell-offs were catalyzed by downgrades in both stock and debt.

Similarly, in The Trade Desk (TTD), short interest rose in March as the stock retreated on concerns regarding geopolitical instability, reduced advertising spend, and competitive pressures.

This surge in short selling sentiment data has caused TTD to exhibit high short squeeze risk for the first time in a year.

Want to know more? Access this data in real time using S3’s BLACK APP & BLACK MAP

The information herein (some of which has been obtained from third party sources without verification) is believed by S3 Partners, LLC (“S3 Partners”) to be reliable and accurate. Neither S3 Partners nor any of its affiliates makes any representation as to the accuracy or completeness of the information herein or accepts liability arising from its use. Prior to making any decisions based on the information herein, you should determine, without reliance upon S3 Partners, the economic risks, and merits, as well as the legal, tax, accounting, and investment consequences, of such decisions.