According to a report titled "Apple is the New #1 Short" by S3 Partners, investors are more bearish on Apple than they have been in a long time.
According to the financial-analytics firm, short interest in Apple has more than doubled to $18.6 billion. The most heavily shorted US company is the iPhone maker, after Musk's electric-vehicle company held that title for almost a year.
A total of 114 million Apple shares were sold short as of Wednesday. About 2% of the company's float was made up of 57 millionTesla shares sold short.
Since 2020, short interest in the company has gone from as high as $51 billion to as low as $6.5 billion. Apple's short interest has ranged from $8 billion to $20 billion.
The amount of money being wagered against a stock is known as short interest. Portfolio hedging and wider short selling can be reflected in it.
Apple short sellers are betting against Warren Buffet, who has a 5.6% stake in the tech giant.
Michael Burry held bearish put options on Apple in the first quarter of this year. The investor of "The Big Short" sold most of his stock in the second quarter.
Since the beginning of the year, the stock ofTesla has soared 10-fold, making it a popular target for short sellers. The company has a market cap of $948 billion, which is 18 times its revenue and 170 times its net income.
The stock market and Apple's share price have fallen this year. The price of Apple's stock has dropped while the price ofTesla's stock has gone down. Some traders see further declines in the stocks.
The market faces more pain after Wall Street warned that stock valuations are too high.
All Rights Reserved © 2024
