Advanced Micro Devices Inc (NASDAQ:AMD) Stock Set To Gain From Short Covering.
Shares of Sunnyvale, California-based Advanced Micro Devices Inc (NASDAQ:AMD) are all set to gain following an earnings release that has The Street impressed, on the lines of what we predicted. AMD delivered strong results which beat analyst estimates, both in terms of top and bottom line numbers. AMD registered positive operating profits and guided for third quarter revenue growth of 15% over last years comparable quarter, both of which were clear positives. With its financials yet to reflect the performance of its EPYC server chips and full quarter numbers for products like its Vega GPUs and Ryzen notebook chips, things only look like they could get better from here.
Meanwhile, short interest in AMD stock continued to inch higher, rising by 3.5% to touch nearly 18% of the float, representing 150 million shares. Short interest rose during the fortnight ended mid-July, after declining during the preceding fortnight. Given the rise in short interest, the 10%+ pre-market pop, and days to cover at 2, expect to see a huge support for the rally from the short covering. Today's rally is likely to lead to a bullish MACD crossover, which could reinforce the bullish sentiment further for AMD stock. And if the rally continues, the 50 day SMA looks set to make a bullish crossover with the 100 day SMA, commonly known as a Golden cross.
Short Interest Rises Further For Twitter Inc (NASDAQ:TWTR) Stock.
Short interest in Twitter Inc (NYSE:TWTR) stock has continued to pile up ahead of the company's Q2 earnings. Short interest in TWTR stock rose by close to 5.5% during the preceding fortnight, to touch 60.2 million shares, up from just over 57 million shares. Short interest has risen consistently since May end when the figure stood at about 52 million shares. As a percentage of float, short interest came in at 9.5%, while days to cover was high at 4 days. With Twitter scheduled to report its second quarter earnings on the 27th of July before the bell, expect to see some volatility. If Twitter impresses The Street, we might just see heavy short covering. If it doesn't, though, a massive correction could be on the cards given its near 36% rally over the last three months. Clearly, the skepticism is growing. The technical charts for Twitter stock don't tell you too much. The stock has recently retreated from overbought territory, which reduces the risk from a technical standpoint. However, given the recent rally, don't be surprised if you see a big correction soon tomorrow.
Blue Apron Stock Is Heavily Shorted Within Days From Its IPO.
Blue Apron Holdings Inc (NYSE:APRN) has had a rather harsh induction into life as a publicly listed company. Since its IPO at a price of $10 a share, the stock went on to touch a high of $11, only to be rattled by Jeff Bezos' Amazon (NASDAQ:AMZN), which has made a habit out of ruffling feathers and crushing stocks on Wall Street. The stock fell to as low as $6.23 a share, before climbing back to $7.5 a piece, where it trades currently. Even at this price, it trades a good 25% below its IPO price. Blue Apron stock has also managed the distinction of being heavily shorted almost immediately following its IPO. Short interest in the stock has risen to about 11.5 million shares, up from 'nil' during the preceding period.
As a percentage of float, short interest now stands at a hefty 38.5%, with days to cover at 2. We might already have seen some short unwinding in the last couple of days, with the stock soaring 13% on Monday, followed by a mild uptick yesterday. However, if the last one month is anything to go by, you can expect to see more volatility on this counter in the coming days. Looking for stocks that are backed by better fundamentals? Check out our top stock picks, which have beaten the NASDAQ by over 156%. If you're looking for technical trading ideas, you should also check out our daily trading ideas section.