The latest short interest data is out for the key counters of AMD stock, Alibaba stock and Snap Inc stock.
The latest short interest data has been made available yesterday for the period ending October 31. Quite possibly, one of 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. This short interest data also holds little more interest as this is out after these companies recent earnings releases. AMD and SNAP stock are almost in the same boat witnessing a massive crash after their earnings announcement while Alibaba stock has continued its bull run to new highs crushing earnings estimates. Now, let's quickly look at the latest changes in short interest in these names.
Short interest in Advanced Micro Devices, Inc. (NASDAQ:AMD) stock rises again after falling in last period.
AMD stock shred another 5% yesterday after the announcement from its core rival Intel (NASDAQ:INTC). The Chipzilla has hired former head of the Dr.Lisa Su led semiconductor company's graphics unit Raja Koduri, to lead its newly formed Core and Visual Computing Group. And, now latest short interest data interest further suggests that the sentiment around AMD stock continues to remain bearish. AMD has held its position for the second most shorted stock on NASDAQ in terms of the number of shares shorted again. Short interest in AMD stock has risen by 4.3%. Short interest in terms of the number of shares shorted is 154.97 million shares, as of the latest reporting date compared to 148.60 million in the preceding period. The days to cover stood at just 2 days. As a percentage of float, short interest increased to 17.6% from 16.8%.
AMD had reported better than expected earnings last month but the next quarter outlook being lower than the latest quarter didn't go down well with investors. Then followed a massive correction in the stock, and in our earlier coverage, we had hinted that AMD shares were almost near a bottom. Shares of the chipmaker have bounced back since then only to be hit hard by the recent spate of negative news. AMD stock is again in oversold territory as per Relative Strength Index (RSI) indicator with the latest RSI reading coming in at 28.51, just below the commonly use oversold threshold limit of 30. However, the Bollinger Bands indicator is yet to flash an oversold signal and generally, the combination of these two popular indicators is considered as a strong signal. Investors looking to play AMD stock would do well to follow the AMD stock technical chart before making a move.
Shorts are fleeing Alibaba Group Holding Ltd (NYSE:BABA) stock.
Alibaba stock's bull run has dealt a heavy blow to the shorts. Just a few days back Alibaba was the most shorted stock in the world in terms dollars-at-risk. With mind-blowing earnings performance and a strong outlook, there seems to be nothing to stop the Chinese eCommerce juggernaut. Alibaba stock performance has had an impact on the short interest as well. If the latest short interest numbers are anything to go by, bears are looking to give up on Alibaba stock as short interest fell consecutively for the third straight fortnight. Short interest in Alibaba stock fell further by 8%. Short interest is only 123.24 million shares, as of the latest reporting date compared to 133.93 million in the preceding period. The days to cover stood very high at 7 days. As a percentage of float, short interest has fallen to 4.8%.
We have remained bullish on Alibaba stock for some time now. With single's day around, this might be an exciting time for Alibaba shareholders. Investors can go through recent coverage on BABA stock to get insights about how to play Alibaba stock ahead of single's day. Having said all this, the Chinese eCommerce giant still remains a good long-term buy, given the multi-billion dollar opportunities ahead of it. It is highly risky at the moment to bet against BABA stock with more and more growth drivers emerging for the Chinese online retail giant
Short Interest in Snap Inc (NYSE:SNAP) stock cools off a bit.
Shorts had been piling into Snapchat parent Snap Inc stock since its second-quarter earnings. However, some shorts seems to have closed their position as of the last reporting period anticipating a better than expected earnings. Snap Inc earnings though were hardly encouraging with revenue and user growth falling short of expectations in a big way. Snap stock has lost nearly 18% of its values after its earnings release. Coming to latest data, short interest in Snap Inc has declined to 114.87 million shares, from 121.13 million shares as of October end, a 5.2% drop. Short interest still stands very high at 29.3% of Snap's float, with days to cover too very high at 6 days. Given that the latest earnings hardly inspires confidence, it's only a matter of time when more shorts would be back betting against Snap stock.
The Snap Inc stock technical chart is flashing some important signals for investors. The recent crash has landed the stock in oversold territory as per Bollinger Bands indicator. The share price has breached the lower Bollinger Band to signal an oversold condition. However, the Relative Strength Index (RSI) indicator is yet to flash an oversold signal, but it's only a matter of next trading session where it could also suggest Snap Inc stock is oversold. The current RSI reading of Snap Inc stock is 30.89, just above the oversold threshold of 30. A bottom may be just around the corner for the Snap stock but it is highly likely that people would like to bet against the stock right now. And, why not, shorts have been very profitable last quarter betting against Snap stock.
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