Tesla Incâ€™s (TSLA) stock price had been dropping and its shares shorted were increasing for most of the first half of 2019. TSLA short sellers were up +$5.16 billion in mark-to-market net-of financing profits as of June 3rd when TSLA hit its year-to-date low of $178.97/share. In just over six months, TSLA shorts were $128 million shy of recouping their 2016-2018 mark-to-market losses of -$5.29 billion.
Most Shorted Stocks
After a three-month buildup from May to July, Netflix Inc (NFLX) short sellers have been slowly trimming their exposure to the online media giant with 1.8 million shares covered, -7.48%, since the beginning of August. NFLX is the 6th largest short in the U.S. market and continues to be the largest short in the Movies and Entertainment Sector. NFLX short interest is $6.2 billion; 21.85 million shares shorted; 5.10% of its float and a 0.30% stock borrow fee (general collateral.)
While there are several Electric Vehicles (EVs) being produced by Internal Combustion Engine (ICE) manufactures such as the Chevy Bolt, Ford Focus, Toyota Prius and the Nissan Leaf and there are many EV manufacturers such as Bollinger, Byton, Lucid and Polestar planning to deliver EVâ€™s in the next few years there are only two major EV producers that are truly shortable â€“ Nio Inc ADR (NIO US) and Tesla Inc (TSLA US). Both NIO and TSLA have been actively shorted in 2019 with positive year-to-date results.
TeslaÂ short int is $9.48bn; 39.17mm shs shorted; 27.76% of float; 0.58% borrow fee. Shs shorted down -579k shs in Sept as price rose 7.3%; and up +424k, +1%, over the last week. Shorts are up +$2.44bn, +27.2%, in YTD mark-to-market profits, but down -$683mm, -7.4%, in Sept.
Short selling in Netflix Inc (NFLX US) has been decreasing since the end of July even though its stock price continued to fall, but we should expect short selling to increase as Apple Inc (AAPL US) announced its own streaming service called Apple TV+ that will launch in November at a price of $4.99 per month. Apple joins The Walt Disney Co (DIS US) and Amazon Inc (AMZN US) in a crowded entertainment segment that Netflix was once the undisputed leader. Netflix shares trades down almost -4% after the announcement and is now down -2.16% at the close.
Short selling in Apple, Inc (AAPL US) stock has been very muted ahead of Apple Event 2019 â€“ the iPhone 11 launch. AAPL short interest is $10.03 billion; 46.82 million shares shorted; 1.17% of its float with a 0.30% borrow fee (General Collateral â€“ the easiest and cheapest to borrow stock.) Apple is now the largest U.S. short, jumping ahead of Tesla (TSLA US) in early August.
short interest is $8.9bn; 39.31 mm shs shorted; 29.62% of float; 0.73% borrow fee. Shares shorted have increased by +564k, +1.45% over the last month, but decreased by -373k,-0.94%, over the last week. Shorts are up +$3.02 billion in YTD mark-to-market profits, -$73mm in Sept.Â
- $GRUB up only 0.1% in mid-day trading as the firm partners with McDonalds for McDelivery. #GrubHub shs shorted increased by 12.4 mm shs, +129%, in 2019; and by 2.18 mm shs, +11.0%, over last month. $GRUB is the 6th largest short in the Internet & Direct Marketing Retail Sector.$GRUB after being up over +9% in morning trading, ended up flat for the day. $1.33 billion of shorts are up +$330.6 million, +28.54%, in year-to-date mark-to-market profits.
We track short interest for 150 securities with $111 billion of market cap in our Cannabis Portfolio to get an overview into short selling activity in the market. These U.S. and Canadian stocks and ETFs have over $5.1 billion of total short interest, an average short interest % of float of 8.25% and 16.75% average stock loan fee. Weâ€™ve seen increased short selling activity in this sector throughout all of 2019 with 99.5 million of net shares shorted worth $1.40 billion. In July, short selling was a bit muted, with 7.2 million shares of new short selling worth $169.7 million.