From Yahoo Finance: 2025-05-13 16:17:00

Hedge funds are showing strong conviction in certain stocks, but short sellers are targeting them. When a stock with high hedge fund interest and high short interest rises, it can trigger a major bull rally. Starbucks Corporation (SBUX) is among the most crowded hedge fund stocks targeted by short sellers, with 84 hedge fund holders and short interest at 3.15%.

Despite a recent earnings report showing a 2% drop in comparable transactions, Starbucks (SBUX) saw a slight turnaround under new CEO Brian Niccol. The company is focused on its Back to Starbucks strategy, aiming for growth and stabilization. Management is confident in the strategy but did not disclose detailed financial outlook for upcoming quarters.

Starbucks (SBUX) ranks 7th on the list of most crowded hedge fund stocks targeted by short sellers. While the company shows promise for investment, some AI stocks may offer higher returns in a shorter time frame. Consider exploring AI stocks with potential for substantial gains, such as the cheapest AI stock currently available.

Management at Starbucks is optimistic about the future, focusing on recovery, international expansion, and operational efficiency. Despite recent challenges, the company remains committed to its Back to Starbucks strategy. For those seeking alternative investment opportunities, exploring AI stocks may offer promising returns.

Read more: Is Starbucks (SBUX) The Most Crowded Hedge Fund Stock That is Targeted by Short Sellers?