Apple supplants Tesla as Wall Street’s biggest short bet

Tesla spent 864 days as Wall Street’s largest short bet. Now it’s Apple. A total of more than $ 18 billion is wagered against Cupertino, the research firm reports, beating long-time leader Tesla for the first time since April 2020.

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Emily Bary for MarketWatch:

Apple Inc. is now Wall Street’s biggest short bet, replacing Tesla Inc., which held the stock continuously since the early days of the COVID-19 pandemic.

Short interest in Apple was $ 18.4 billion as of Wednesday, while short interest in Tesla TSLA, 0.88%, was $ 17.4 billion, according to research by S3 Partners.

The gradual shift largely reflects short sellers reducing exposure to Tesla, rather than large changes in Apple’s active shorting, wrote Ihor Dusaniwsky, chief executive of predictive analytics at S3 Partners in a research note.

“While short interest shows us dollars at risk, it doesn’t show us short trading activity that directly affects the price of a stock,” he explained. “The rise or fall in short-term interest is a function of a rise or fall in short shares and a change in the price of a stock,” she said. “Therefore, if the shares remain static but the price of a share increases, its short interest increases, but without trading on the short side of the stock, short selling or short hedging, the change in short interest it has no effect on the rise or fall of the market price of the underlying security.

MacDailyNews takes: So expect the anti-Apple FUD fomenting from short films to increase.

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