Advanced Micro Devices, Inc., Alibaba, Snap Inc - Short Interest Update

The latest short interest data is out for AMD stock, Alibaba stock and Snap Inc. stock. Have a look.

Advanced Micro Devices, Inc., Alibaba, Snap Inc - Short Interest Update

The latest short interest data is out, and possibly, the most keenly watched counters would be those of Sunnyvale, California-based Advanced Micro Devices, Inc. (NASDAQ:AMD), Chinese eCommerce giant Alibaba Group Holding Ltd (NYSE:BABA) and Venice, California based Snap Inc (NYSE:SNAP), parent of the popular social media app Snapchat.  It has been an eventful month so far for AMD stock as it continues its roller coaster ride and still remains highly volatile. While Alibaba stock's uptrend has hit a speed bump for the time being, there are no signs of an end to the misery for SNAP stock. Now, let's quickly look at the latest changes in short interest in these names.

AMD Short interest rises further and edges closer to one-year high level.

Short Interest in AMD stock has increased by 6.1% as per the latest short interest data. Short interest is as of mid-September (Sep 15), but the data became available only yesterday, the 26th of September. Short interest in the latest reporting period has come close to the one-year high, coming in at nearly 158.10 million shares, representing 17.9% of AMD's float. Short interest in the preceding fortnight was at 149.04 million shares. The days to cover in the latest reporting period are also a tad high at 3 days. It's worth noting that in terms of the number of shares shorted, AMD is still one of most shorted stocks on NASDAQ, standing at number 2 in that list and the AMD short interest has now risen consecutively for three reporting periods.

Earlier, from the mid-second week of September, Mr. Market had started warming up to all the recent positives for the Dr. Lisa Su led company. AMD stock was on its best run in recent times but it has been unable to sustain the momentum. The semiconductor company's Q3 earnings would be very crucial for the stock's performance given the fact that there are many reports that AMD is clearly hurting Intel but, will that lead to a significant financial impact needs to be seen. Another cause of concern among investors is whether AMD can keep pace with Intel's latest chips, one of which the Chipzilla claims to be its best gaming desktop processor ever. The release of Intel's latest chips is also one reason for AMD stock's latest struggles. Further, AMD stock has made some bearish crossovers in the last few days. If you see the stock fall further from here, it might be worth the effort to look at the AMD stock technical chart.

Alibaba short interest keeps ticking higher even after multi-billion dollar losses for the shorts.

Shorts keep piling onto Alibaba stock even after a reported $9.8 billion loss for them from the beginning of this year. Alibaba stock is up a massive 90% year to date. As per a report last month, Alibaba stock was the most shorted stock around the world, with over $22.1 billion worth of shares shorted. In the latest reporting period, short interest in Alibaba shares increased by another 2.2%. Short interest in BABA stock stood at 139.79 million shares, up from 136.74 million shares at the end of the preceding reporting cycle. Short interest in Alibaba stock as a percentage of float stood at 5.5%, with days to cover coming in very high at 8 days. The high short interest is partly explained by the stocks more than 105% gains till the beginning of last week. The rally in Alibaba shares has been so good that it came within striking distance of dethroning Amazon (NASDAQ:AMZN) as the largest eCommerce company. However, the stock came under pressure recently. Though the selloff in Alibaba stock seems to be overdone, this would come as a big relief to the shorts. In the long run, the shorts could be in big trouble as we believe Alibaba stock looks good to breach the $200 mark soon.

Short Interest in Snap stock climbs higher.

There seems to be no end to the woes of SNAP stock. After rallying more than 30% from its all-time lows, SNAP stock has embarked on another downhill run. The shorts have made merry on account of Snap Inc's woes. According to S3 partners, Shorts are up $345 million YTD, in MTM (mark to market) profits. Further, the condition is such that SNAP stock is in limited borrow supply and a new stock borrow costs a hefty 17% fee. They put the SNAP short interest value at $1.44 billion. Coming to the official short interest numbers in the latest reporting period, short interest in SNAP stock rose to 103.91 million shares from 94.62 million shares in the last reporting cycle. Short interest in Snap Inc stock stood at a rather high ~21.4% of float, with days to cover at 3 days. Poor growth numbers so early in its growth cycle, mounting losses and the premium valuations, make SNAP stock a highly risky play.

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Sreekanth Anasa Sreekanth Anasa   on Amigobulls :

Neither Amigobulls, nor any members of its staff hold positions in any of the stocks discussed in this post. The author may not be a certified/registered investment advisor, and the opinions expressed should not be treated as investment advice.

Buying and selling of securities carries the risk of monetary losses.Readers/Viewers are advised to carry out their own due diligence and consult their investment advisors before making any investment decisions.

Neither Amigobulls, nor the author have any business relationship with any of the companies covered in this post.

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