Zynga Inc (ZNGA) is the fourth largest short in the U.S. Interactive Home Entertainment Sector. After covering half their ZNGA short exposure, -33.0 million shares, by June 1st as ZNGA‚Äôs stock price rose 60%, short sellers have increased their shares shorted by +79.3 million shares, an increase of 252%.
ZNGA short sellers are down -$87.0 million in year-to-date mark-to-market losses, but most of these losses occurred during ZNGA‚Äôs five-month rally to start the year. Since June, ZNGA shorts are up +$33.1 million in mark-to-market profits as its share price has tumbled 7%.
Over the last thirty days we‚Äôve seen +12.3 million shares shorted, an increase of +12.5%, even as ZNGA‚Äôs stock price rose slightly, +1.9%. Over the past week, ZNGA‚Äôs stock price has dipped by -5.5% and short sellers have shorted 891 thousand shares into this recent price weakness.
ZNGA continues to be a general collateral stock borrow (the easiest to borrow stock at the cheapest rates) and there is still ample stock borrow supply on the street.
ZNGA short selling has slowed down over the last two weeks from its torrid summer pace. IN 2019, ZNGA short sellers have been momentum followers, covering into ZNGA‚Äôs early year rally and shorting when its stock price stalled and reversed. If ZNGA‚Äôs recent upward price movement continues to lose steam, we should see additional short selling into price weakness.
Want deeper insight into the above analysis?
Managing Director Predictive Analytics, S3 Partners, LLC
For more information on S3‚Äôs reporting, data and analytics solutions, email us at [email protected]. Start your free trial of the BLACK App ‚Äď the only source of real-time short interest on the Bloomberg Terminal or Thomson Reuters Eikon.
For short side data and access to our research reports go to https://shortsight.com/ .
The information herein (some of which has been obtained from third party sources without verification) is believed by S3 Partners, LLC (‚ÄúS3 Partners‚ÄĚ) to be reliable and accurate.¬† Neither S3 Partners nor any of its affiliates makes any representation as to the accuracy or completeness of the information herein or accepts liability arising from its use.¬† Prior to making any decisions based on the information herein, you should determine, without reliance upon S3 Partners, the economic risks and merits, as well as the legal, tax, accounting and investment consequences, of such decisions.