Snap Inc (SNAP) is the fifth largest short in the U.S. Interactive Media and Services Sector. For the first half of 2019 short sellers were busy covering their positions, buying to cover 25.8 million shares, -19% of their exposure, as SNAPâ€™s stock price almost rallied +187%. Since mid-June, even though SNAPâ€™s stock price rose by +12%, short sellers rebuilt their SNAP exposure and shorted 35.2 million shares, an increase of +46.8%.
Snap Inc. (SNAP) is up over 166% in 2019 and shorts are down $1.02 billion, -99.74%, in mark-to-market losses for the year. Unlike Tesla short sellers who refused to cover their short positions in the face of mounting losses, SNAP short sellers felt the squeeze and covered more than half their outstanding short shares. Since February, when we saw the start of the short squeeze, SNAP shares shorted declined by 75.1 million shares, a decrease of 52%.
Shares of Snap Inc. (SNAP US) are up 10% in early trading after a longtime bear analyst at BTIG upgraded the stock to BUY on the back of better advertising revenue expectations for the company.
Real-time short interest is currently: 117.41 million shares / 18.06% of float / $1.18 billion at risk.
SNAP Inc (SNAP) short interest is $964 million; 136.88 million shares shorted; 23.78% of float; stock borrow is 30 bp fee (general collateral). SNAP is the 6th most shorted stock in the domestic Interactive Media & Services sector.
SNAP Inc. (SNAP) short sellers, and their Prime Brokers, have been scrambling this morning to cover an avalanche of stock loan recalls which hit the street today. The recalls were due to beneficial owners having sold stock which were on loan to the street. With over 5 million shares recalled street-wide today, stock loan desks have been sweeping the street for the last blocks of available stocks to borrow to satisfy these lender recalls. Prime Brokers are borrowing stock from lenders who are not recalling shares at the moment, to cover their open recall requests. If there is still enough liquidity in the market Prime Brokers will be able to avoid following through on their client recalls, which would force their hedge funds to begin buying-to-cover and exit their SNAP short trades earlier than anticipated. If stock loan availability dries up, we can expect a significant amount of short covering driving up SNAPâ€™s stock price even further from its recent historical low.
Kylie Jenner tweeted that she does not open her Snapchat Inc. (SNAP) app anymore and the stock is down over 8% in mid-afternoon trading. Kylieâ€™s tweet along with a system redesign that has alienated many of its users continues to drive SNAPâ€™s stock price down. SNAP is the largest short in the Application Software sector with $1.99 billion of short interest with shorts increasing their exposure since the beginning of January.
Snap Inc. (SNAP) reported strong quarterly earnings yesterday with revenues up 72% year-on-year and a net loss of $350 million which was less than analystâ€™s expected. Daily active users, a metric of market wide relevance in the social media sector, rose by 8.9 million in the quarter. Investors responded by lifting Snapâ€™s stock price up 48% yesterday, pushing it over $20/share for the first time since June 2017.
Jefferies analyst Brent Thill joined Cowen & Co. analyst John Blackledgeâ€™s earlier downgrade of Snap Inc. (SNAP) stock today citing full valuation at Snapâ€™s present stock price. While Blackledge lowered his target price for Snap to $11, Thill kept his target price at $15. According to Bloomberg, Snap now has double the amount of sell ratings, 10, than buy ratings, 5.
Snap Inc. (SNAP) is the largest short in the Application Software Sector but short sellers have been trimming their exposure to the stock ahead of todayâ€™s third quarter earnings release. SNAP short interest is $1.7 billion, an increase of $445 million, or 35%, since mid-year, but short sellers have covered $115 million of their positions in the last week and $278 million from its year-to-date high of $2.0 billion in mid-October.
SNAP Inc. A (SNAP US) short interest decreased by $273 million in July, and is currently at $1.003 billion today. Short interest peaked on June 1st at $1.44 billion and has decreased along with SNAPâ€™s stock price with short sellers covering some of their positions.