Tesla Loses Most-Shorted Crown To This 'Magnificent 7' Stock As EV Giant's Skeptics Take $13B Hit In 2023
Portfolio Pulse from Shanthi Rexaline
Tesla, Inc. (TSLA) is no longer the most-shorted stock, now ranking third behind Apple, Inc. (AAPL) and Microsoft Corp. (MSFT). Other 'Magnificent 7' stocks like Nvidia Corp. (NVDA), Amazon, Inc. (AMZN), and Meta Platforms, Inc. (META) are also among the top shorted stocks, while Alphabet, Inc. (GOOGL/GOOG) is 11th. Tesla still has the highest short interest among the 'Mag 7' at 3.06%. General Motors Corp. (GM), T-Mobile US, Inc. (TMUS), Palo Alto Networks, Inc. (PANW), RTX Corp. (RTX), and Uber Technologies, Inc. (UBER) have higher short interests than Tesla. Advanced Micro Devices, Inc. (AMD) has a short interest of 3.02%. Tesla shorts lost $12.5 billion in 2023, and the company's stock performance could be influenced by its delivery strength and margin profile management.
January 18, 2024 | 7:39 am
News sentiment analysis
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NEGATIVE IMPACT
Apple's increased short interest may reflect concerns over slowing iPhone demand and the need for a new hit product, potentially affecting its stock price.
The increased short interest in Apple's stock suggests that investors are concerned about the company's fundamentals, including slowing iPhone demand. This negative sentiment could lead to downward pressure on the stock price in the short term.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 70
NEUTRAL IMPACT
Amazon's significant short interest could affect its stock price, but the company's diverse business may mitigate the impact.
While Amazon has a considerable amount of short interest, its diversified business model and strong market position may lessen the impact on its stock price in the short term.
CONFIDENCE 65
IMPORTANCE 55
RELEVANCE 50
NEUTRAL IMPACT
Meta Platforms' short interest reflects market challenges, possibly leading to stock price fluctuations in the short term.
Meta Platforms' short interest indicates that investors are cautious, which could lead to stock price fluctuations. However, the company's efforts to adapt to market changes may stabilize the stock.
CONFIDENCE 65
IMPORTANCE 55
RELEVANCE 50
NEUTRAL IMPACT
Microsoft's position as one of the top shorted stocks may indicate market skepticism, potentially impacting its stock price in the short term.
Microsoft's high short interest could be a sign of market skepticism, but without specific negative news, the short-term impact on the stock price is likely to be neutral.
CONFIDENCE 65
IMPORTANCE 60
RELEVANCE 60
NEUTRAL IMPACT
Nvidia's position in the top shorted stocks could lead to increased volatility in its stock price, especially with the focus on AI technology.
Nvidia's stock may experience short-term volatility due to its high short interest. However, its position in AI technology could counterbalance the negative sentiment.
CONFIDENCE 65
IMPORTANCE 65
RELEVANCE 60
NEUTRAL IMPACT
Tesla's stock may face volatility due to its high short interest and recent losses by short sellers. Future performance will depend on delivery numbers and margin management.
Tesla's stock is sensitive to changes in delivery and margin figures, which are key factors for investors. The high short interest indicates market skepticism, but the recent losses by short sellers could deter further short selling, leading to a neutral short-term impact.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Alphabet's lower ranking in short interest suggests less market skepticism compared to peers, potentially leading to a stable stock performance.
Alphabet's position outside the top 10 most-shorted stocks indicates relatively lower market skepticism, which could contribute to a positive short-term impact on the stock price.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 40