Published on 19 Jul 2024 on Insider Monkey · via Yahoo Finance

Cabaletta Bio, Inc. (CABA): Why Are Analysts Loving This Shorted Stock Right...

We recently compiled a list of the 10 Most Shorted Stocks That Are Loved by Analysts. In this article, we are going to take a look at where Cabaletta Bio, Inc. (NASDAQ:CABA) stands against the other shorted stocks that are loved by analysts.

Short selling is one of the more controversial ways of making money on the stock market. While typically investors buy and hold stocks with the belief that the price will increase in the future, most short sellers bet against the shares after conducting research that suggests weaknesses within a firm's business model and fundamentals. Naturally, this leads to detractors of the practice arguing that the very act of revealing a short position can negatively affect the target firm's share price, while the proponents claim that short selling promotes market efficiency and lets diligent investors capitalize on their research skills.