Wall Street analyst Tom Lee interpreted the surge in short interest for Strategy Inc. (NASDAQ:MSTR) as a contrarian bullish signal on Tuesday.
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In an X post, Lee stated that when a stock becomes a “consensus” short, it often signifies a crowded trade. This, he argued, could lead to the stock rallying even on “bad news” as the negative impact is already priced in.
Lee’s comments came in response to Strategy becoming the most shorted large-cap U.S. stock as investors piled into bets against the firm’s Bitcoin (CRYPTO: BTC) playbook.