Peloton Is a ‘Prime Short Squeeze Candidate’ Amid Record Rally

Peloton Interactive Inc.’s run to record highs may not be coming to an end anytime soon as both long and short investors attempt to “pounce” on the limited amount of sell orders, according to financial analytics firm S3 Partners.

The at-home equipment maker’s more than 15% gain after impressive quarterly results has the stock on track for a record week that has boosted its market value by $3.4 billion. Thursday’s rally has resulted in more than $83 million in mark-to-market losses for short sellers, bringing their year-to-date decline to $243 million, S3 Partners data show.