From Spirit Airlines to Lion Electric: Using AltIndex’s AI Score for Shorting Opportunities

November 20, 11:33 am

At AltIndex, we’re committed to equipping investors with the tools and insights needed to navigate the stock market. By combining financial data with alternative data - such as web traffic, employee sentiment, and social media trends - our AI Score delivers a comprehensive view of a company’s performance. A higher AI Score indicates a strong buy opportunity, while a lower score often signals trouble, potentially presenting lucrative shorting opportunities.

Here’s how our AI Score has consistently helped members capitalize on declining stocks over the past few months:

Spirit Airlines (SAVE): A Sell Signal Before Bankruptcy

Two months ago, Spirit Airlines saw its AI Score plummet from 51 (neutral) to 32, marking a clear sell signal. Weak financials, deteriorating stock sentiment, and negative business outlooks among employees were key factors behind this decline. Fast forward to this week, Spirit Airlines announced it is filing for bankruptcy. Since our sell signal, the stock has nosedived by over 50%, validating the predictive power of our AI-driven insights.

Smart for Life (SMFL): A 90% Drop in Days

In early September, Smart for Life’s AI Score tumbled to 29, a strong sell signal. At the time, the stock was trading at $1.16 per share. Shortly thereafter, the company faced delisting due to audit delays. Today, its shares are quoted on the OTC Markets at just $0.05 - a 90% plunge since our sell signal. For short sellers, this represented a massive opportunity to capitalize on the stock’s collapse.

Lion Electric (LEV): A 66% Slide

Back in July, Lion Electric’s AI Score dropped to 18, indicating significant trouble ahead. The stock was trading at $0.60 per share, but our alternative data insights - declines in sentiment, social media followers and business outlook - suggested more challenges were imminent. Recently, Lion Electric faced NYSE delisting of its warrants, and the stock now trades at just $0.20 - a 66% drop from our sell signal.

Alternative Data as a Leading Indicator

These cases underscore the value of alternative data as a predictive tool for identifying not only strong performers but also companies in decline. By using metrics such as web traffic, social media followers, and employee satisfaction, our algorithms provide leading signals, helping investors uncover shorting opportunities early.

At AltIndex, we’re transforming market analysis, empowering investors to make smarter decisions with timely insights. Whether you’re looking for the next breakout stock or identifying struggling companies to short, our AI Score is designed to guide you every step of the way.

Check out Best Stocks to short for more companies with a low AI Score.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered financial advice. Investing and short selling involve risk, and past performance of the AltIndex AI Score is not indicative of future results. Always conduct your own research or consult a financial advisor before making investment decisions.

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