Ever-anticipating the Reddit IPO, with all signs pointing to an inevitable letdown due to overwhelming demand and limited growth potential, some retail traders have shifted their focus to uncovering the hidden gems of short-squeeze potential. A prevailing opinion suggests that once the Reddit stock makes its public debut, initial short selling pressure will artificially depress its value. Simultaneously, steep borrowing fees increase the odds of short position closures, setting the stage for a short squeeze to unfold.

While this speculation may have its merits, it’s prudent for investors to look past the Reddit hype and explore other short-squeeze contenders that offer substantial upside potential both in terms of short-squeeze opportunities and as stand-alone investment prospects. These three prime short-squeeze stocks exemplify these qualities, beckoning short-squeeze aficionados to reconsider before banking solely on a Reddit rollercoaster ride.

Unlocking Intuitive Machines (LUNR)

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Intuitive Machines (NASDAQ:LUNR) emerges as a compelling prospect for short-squeeze enthusiasts, standing as a testament to resilience following a space venture mishap that dimmed its shares. The subsequent downturn seems outsized, with short interest lingering over 34% despite a recent per-share plunge of 50%.

The spotlight awaits as the company eagerly anticipates the return of sunlight to the Moon’s southern pole, potentially reigniting its lander. The recommencement of lunar exploration activities with the aid of solar-powered data transmission systems spells not only good news for researchers and space buffs but also a potential surge in stock value, launching this short-squeeze candidate into orbit.

The Creative Potential of Desktop Metal (DM)

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Renowned 3D printing company and modestly-priced stock Desktop Metal (NYSE:DM) emerges as a premier short-squeeze candidate, boasting an impressive 34% short interest. However, the stock’s potential for a squeeze is twofold: with its share price residing below the $1 mark, imminent short position closures could fuel a dramatic turnaround. Adding to its appeal, the company recently reported record annual recurring revenue of $65 million, marking a notable 29% year-over-year surge, and managed to slash its net loss to a mere $323.3 million. A stark improvement from last year’s staggering $740.3 million loss.

Though the advancements may appear modest at first glance, the confidence bestowed by strategic investors like Alphabet‘s (NASDAQ:GOOG)(NASDAQ:GOOGL) Google and automobile titan Ford (NYSE:F) speaks volumes about Desktop Metal’s enduring business model. If these industry stalwarts see promise in the long-term prospects, perhaps it’s time for investors to lend a keen eye to the creative prowess of this underdog in the making.

Unveiling the Short-Squeeze Potential of Blink Charging (BLNK)

A Flash of Brilliance in a Dull Market

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Blink Charging (NASDAQ:BLNK) electrified investors with its record revenue in a Mar. 14 earnings report. The stock, however, lingers in a subdued state, presenting an enticing short-squeeze stock opportunity. The fourth-quarter revelation illuminated a 130% surge in full-year revenue, concluding with a year-end gross profit of $40.2 million, representing 29% of revenue – a commendable feat for a stock as infrastructure-laden as BLNK. The company also boasted over 23,000 charging installations throughout 2023. Despite this commendable performance, shares plummeted by almost two-thirds, revisiting penny stock realms. Meanwhile, short interest remains elevated, surpassing 30%.

This report strings together a five-quarter sequence of surpassing analyst projections, bolstering Blink’s short-squeeze stock potential for the long haul. Particularly noteworthy is the fact that the stock is hovering at such low levels that maintaining short positions seems futile. The closure of just a few short positions could trigger a substantial surge in per-share valuation, especially as the management’s ambition to expand manufacturing to 50,000 annual units materializes in 2024.

On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article belong to the author, in adherence to the InvestorPlace.com Publishing Guidelines.