Follow Us "MicroCloud Hologram, SoundHound AI And More: Top 5 Software Stocks with the Highest Short Interest")
Short interest, defined as the proportion of the outstanding shares held as short, generally suggests a bearish bet on the stock.
The near-term stock market outlook appears uncertain amid multiple headwinds. Against this backdrop, investors will likely tread cautiously regarding stocks that have raked up substantial short interest.
Short interest, defined as the proportion of the outstanding shares held as short, generally suggests a bearish bet on the stock. However, if the tide turns and the stock begins to reverse course, it could spike higher on a short-squeeze.
The following stocks from the software space are among the ones with the highest short interest as a percent of the total outstanding shares:
MicroCloud Hologram, Inc. (HOLO)
- Short interest: 45.70%
- Upside Potential: N/A
MicroCloud Hologram is a holographic technology services company based in Shenzhen, China. It has recently forayed into quantum computing technology.
The nano-cap company’s shares have fallen nearly 83% so far this year.
The company’s quantum computing foray sent the stock skyrocketing to a high of $9.25 on Dec. 31, but it has since then given back most of its gains.
On Stocktwits, sentiment toward MicroCloud Hologram stock stayed ‘bearish’ (32/100) and the message volume was ‘low.’
SoundHoundAI, Inc. (SOUN)
- Short interest: 30%
- Upside Potential: +44.50% (based on Koyfin-compiled consensus price target.)
SoundHound AI is a conversational artificial intelligence (AI) solutions company based in Santa Clara, California. The company’s shares were on a tear in the second half of 2024 amid multiple partnerships and the general optimism toward AI technology following President Donald Trump’s reelection.
After ending 2024 with a gain of 836%, the stock has lost nearly 50%.
SoundHound AI stock has triggered ‘bearish’ sentiment (32/100) among retailers on Stocktwits, with the message volume remaining ‘low.’
The stock could pick up some momentum amid Nvidia Corp.’s (NVDA) 2025 GTC conference being held this week.
Urgent.ly, Inc. (ULY)
- Short interest: 20.90%
- Upside Potential: N/A (covered only by one analyst)
Vienna, Virginia-based Urgent.ly provides a mobility assistance software platform for roadside assistance.
The company’s shares have been highly volatile lately amid continuing news flow. They slumped 40% on Thursday after the company announced a one-for-12 reverse stock split to regain compliance.
Urgent.ly stock will begin to trade on the reverse split-adjusted basis on Tuesday.
On Stocktwits, retail sentiment toward the stock turned to ‘neutral’ (52/100) from the ‘bullish’ mood seen a day ago and the message volume was ‘low.’
Cerence, Inc. (CRNC)
- Short interest: 20.60%
- Upside Potential: +22%
Burlington, Massachusetts-based Cerence’s AI-powered virtual assistants are used by the mobility/transportation market in the U.S. and overseas.
Cerence stock has gained nearly 32% this year, rebounding from the 60% slump in 2024, with much of the strength attributable to an expanded collaboration with Nvidia to develop AI vehicle products.
Retail’s sentiment toward the stock stayed ‘bearish’ (31/00) and the message volume remained ‘extremely low.’
Clear Secure, Inc. (YOU)
- Short interest: 19.20%
- Upside Potential: +16%
Clear Secure is a New York-based secure identity platform provider that operates under the CLEAR brand name. It also offers CLEAR Plus, a consumer aviation subscription service that enables access to predictable entry lanes in airport security checkpoints and a broader network.
Clear Secure stock is up merely 0.5% this year following its 33%+ gains in 2024.
The stock has also garnered ‘bearish’ sentiment (41/100) from among the Stocktwits users, with the message volume remaining at ‘extremely high’ levels.
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