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.
Most Shorted Stocks
- Financial SecuritiesS3 PartnersS3 ResearchTesla
Tesla Inc (TSLA) reported second quarter results after the market closed on Wednesday and although they delivered a quarter of record deliveries (95,356 vehicles), record production (87,048 vehicles), and strong revenues ($6.35 billion) they also reported a wider than expected loss of -$1.12 per share. Tesla is projecting positive net income for the third quarter and the opening of its Chinese production facility year end. Another negative announcement was the resignation of its founding engineer and CTO, J.B. Straubel, after 16 years of service at the company.
Netflix Inc (NFLX) reported 2nd quarter earnings of $4.9 billion, up 26% year-on-year, but added fewer than expected domestic and international subscribers driving its price down almost 11% in aftermarket trading following a relatively weak trading day which saw its stock price fall nearly 1%.
- EquitiesS3 PartnersS3 ResearchTesla
Tesla Inc (TSLA) closed the day down -2.69%, and down -14% month-to-date. TSLA shorts are up $1.07 billion in mark-to-market profits in May, making it one of their most profitable months since 2016. TSLA shorts are having a rebound year, up $3.88 billion in mark-to-market profits in less than five months in 2019 versus mark-to-market losses of -$1.40 billion in 2018, -$3.56 billion in 2017 and -$400 million in 2016.
- FacebookS3 PartnersS3 Research
Facebook Inc (FB) shares shorted has more than halved in 2019, declining by 19.5 million shares, -56.5%. In April 3.8 million short shares were covered, -20.0%, as short sellers prepared for positive Facebook earnings results after a slew of unfavorable news stories centering around user data and privacy concerns.
- ChipotleConsumer DiscretionaryS3 PartnersS3 Research
Chipotle Mexican Grill Inc (CMG) remains one of the most heavily shorted stocks in the U.S. Restaurant Sector, but short sellers have been trimming their positions recently with 538 thousand shares covered, -19.2%, since the middle of March.
- Consumer DiscretionaryCorporateNIOS3 PartnersS3 ResearchTesla
Both Tesla Inc (TSLA) and NIO Inc (NIO) had reports of vehicles fires in Shanghai and Xiâ€™an China which is highlighting safety fears over electric vehicles and the use of high density lithium batteries. TSLA is down -3.6% over the past two days while NIO is up slightly, +0.84%.
- AppleConsumer DiscretionaryInformation TechnologyS3 PartnersS3 ResearchSectors
Qualcomm Inc (QCOM) is up over 23% after the digital wireless communications equipment manufacturer agreed to end all litigation with Apple Inc (AAPL) and agreed on a six year licensing deal and supply agreement.
Netflix, Inc (NFLX) will be releasing their earnings after the bell today. The big question is whether the largest internet subscription service will be able to follow up last yearâ€™s surge in subscriber growth with another blockbuster year or will competition from Amazon.com Inc (AMZN), stand alone streaming channels and pending Apple Inc (AAPL) and Walt Disney Co (DIS) streaming services take a bite out of their meteoric growth path.
- CorporateExxon MobilS3 PartnersS3 ResearchSectors
Chevron Corp (CVX) is acquiring Anadarko Petroleum Corp (APC) for $33 billion in cash and stock to join the ranks of Exxon Mobil Corp (XOM), Royal Dutch Shell PLC (RDS/A) and BP PLC (BP) as one of the major worldwide oil producers.