Tesla “gave way”, and now Wall Street's biggest shorting target is: Apple
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Apple is “passive” as the “boss”...
As bears cut their exposure to Tesla, Apple has once again become a “Wall Street shorting target.”
As bears cut their exposure to Tesla, Apple has once again become a “Wall Street shorting target.”
According to data released by financial analysis company S3 Partners on September 14, local time, as of September 13, Apple's short position was 18.4 billion US dollars, surpassing Tesla's short position of 17.4 billion US dollars, and regaining the “Wall Street Shorting Target” position after a lapse of 864 days.
Specifically, 128.6 million Apple shares were shorted, with short equity accounting for 0.70% of tradable shares; 57.3 million Tesla shares were shorted, and short equity accounted for 2.19% of tradable shares.
Against the backdrop of rising expectations of the Federal Reserve's interest rate hike, Wall Street bears are looking at large US technology stocks. According to the data, Wall Street's top five shorting targets are Apple, Tesla, Microsoft, Amazon, and VISA, followed by Google's parent company Alphabet.
Source: S3 Partners Tesla's bearish exposure decreased, and Apple “passively” became the “number one target”
Regarding the Wall Street shorting target switching from Tesla to Apple, Ihor Dusaniwsky, head of predictive analysis at S3 Partners, wrote in the research report that although investors' interest in shorting Apple has generally increased this year, this change largely reflects that bears have cut their exposure to Tesla, and it does not accurately reflect the sharp increase in the power of shorting Apple:
“The changes in the shorting rankings are mainly due to shorters' reduced exposure to TSLA, not to a significant increase in the number of Apple shorting.
In 2022, Despite TSLA's stock price falling throughout the year, bears continued to make up and reduce positions to deal with possible long-term rolling pressure.
Apple's short exposure has increased since this year. (There are two possibilities) Either investors expect the stock to perform poorly in the future, or investors are shorting the stock to hedge their technology company stock portfolios.”
Further, Ihor Dusaniwsky explained that in the past three months, the number of Apple shares shorted has indeed increased, but the more important influencing factor may be the rise in Apple's stock price; although Tesla's stock price has also been strong in the past three months, there have been some short compensation for Tesla in the past 30 days, making the increase in short positions not as much as the stock price increase.
In 2022, Despite TSLA's stock price falling throughout the year, bears continued to make up and reduce positions to deal with possible long-term rolling pressure.
Apple's short exposure has increased since this year. (There are two possibilities) Either investors expect the stock to perform poorly in the future, or investors are shorting the stock to hedge their technology company stock portfolios.”
Further, Ihor Dusaniwsky explained that in the past three months, the number of Apple shares shorted has indeed increased, but the more important influencing factor may be the rise in Apple's stock price; although Tesla's stock price has also been strong in the past three months, there have been some short compensation for Tesla in the past 30 days, making the increase in short positions not as much as the stock price increase.
“The increase or decrease in short positions is calculated by two factors: the increase or decrease in the number of shares sold short and changes in stock prices.
Therefore, if the number of shorted stocks remains the same, but the price of the stock rises, its short position will increase. However, in the absence of shorting, or making up for stocks, changes in short positions have little impact on the rise or fall of the market price of the relevant stock.”
S3 Partners' data also shows that since 2020, the number of shares shorted for Tesla has generally shown a downward trend, while the overall number of shares shorted for Apple has fluctuated, with little change:
Therefore, if the number of shorted stocks remains the same, but the price of the stock rises, its short position will increase. However, in the absence of shorting, or making up for stocks, changes in short positions have little impact on the rise or fall of the market price of the relevant stock.”
S3 Partners' data also shows that since 2020, the number of shares shorted for Tesla has generally shown a downward trend, while the overall number of shares shorted for Apple has fluctuated, with little change:
“Since 2020, Tesla's short position size has increased from US$10.93 billion to US$17.44 billion, but it has fluctuated greatly during the period, reaching a maximum of US$51.04 billion, and the lowest is only US$6.51 billion.
Apple's short position increased from US$13.33 billion to US$18.444 billion during the same period, but there was little fluctuation during the period, with a maximum of US$20.36 billion and a minimum of US$7.93 billion.”
Trends in the number of shorted shares of Apple and Tesla in 2020-2022, Source: S3 Partners
Apple's short position increased from US$13.33 billion to US$18.444 billion during the same period, but there was little fluctuation during the period, with a maximum of US$20.36 billion and a minimum of US$7.93 billion.”
Trends in the number of shorted shares of Apple and Tesla in 2020-2022, Source: S3 Partners
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