Get ready, Fools. There's likely to be some major movement this week on Wall Street. That's especially true if you own shares of Organovo (NASDAQ:ONVO), Wayfair (NYSE:W), or Bitauto Holdings (NYSE:BITA). That's because shares of all three of these companies -- all smaller than $4 billion in market cap -- are heavily shorted and reporting earnings this week.
When those two factors combine, volatility is almost always a result. If you don't believe me, check out the three stocks I highlighted two weeks ago, which moved an average of 11% following their respective quarterly releases.
But don't try to turn a quick buck off this information. There's no telling if these stocks will go up or down. Instead, current shareholders should check out the slideshow below so that they know the difference between short-term noise and long-term signal when their company reports.
Brian Stoffel owns shares of Bitauto Holdings Limited (ADS), and Organovo. The Motley Fool recommends Wayfair. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.