The latest short interest numbers have just been released. Take a look at the data of key tickers: AMD stock, Tesla stock and Micron stock.
The November end short interest numbers have just come in yesterday. In all likelihood, Dr. Lisa Su led semiconductor company Advanced Micro Devices, Inc. (NASDAQ:AMD), Elon Musk led electric carmaker Tesla Inc (NASDAQ:TSLA) and chipmaker Micron Technology, Inc. (NASDAQ:MU) will feature among the most eagerly watched counters for the short interest data. Both the semiconductor stocks AMD and Micron have seen considerable correction over the last fortnight while Tesla shares have traded sideways for the majority of the time. The recently released short interest numbers could give investors a better idea of the market sentiment with respect to these names. So, let's take a look at how short interest has changed for the three stocks in question, over the previous fortnight.
Short Interest in Advanced Micro Devices, Inc. (NASDAQ:AMD) stock rises to record highs.
Shares of CPU and GPU maker Advanced Micro Devices, Inc. have had a rough time lately falling to single digits for a brief period after a hiatus of 11 months. The sentiment around AMD stock has gone quickly from bullish to bearish in just a matter of over one month after its Q3 earnings. The recently released AMD short interest numbers could help investors assess whether the bearish sentiment has strengthened further or weakened. Short interest in AMD stock for the period ending November 30 has risen to record highs. AMD stock is still the second most shorted stock on NASDAQ in terms of the number of shares shorted. Short interest in AMD has risen to 177.02 million shares, from 173.1 million shares as of mid-November, another slender increase of 2.3%. As a percentage of float, short interest came in at 19.6%, with days to cover also coming high at 4 days.
In our recent coverage of AMD stock on Amigobulls, we had hinted that the stock could have a tough time going ahead until the next earnings. And, rightly, AMD shares fell to single digits prior to that. We had highlighted that AMD stock lacked near-term catalysts to drive the stock higher. The question which still remains is, how long can AMD stock stay above $10? With the next major product launch in Ryzen 2 chips only in March 2018, AMD stock has its task cut out till then. The volatility in AMD stock is likely to continue for a while now.
Tesla Inc (NASDAQ:TSLA) stock short interest edges closer to one year high.
Tesla Inc stock popped more than 4% in yesterday's trade breaking the resistance at the $318 mark. The pop was largely driven by the news that Tesla has started to deliver Model 3 cars to customers other than company employees and insiders. Electrek also reported that the Elon Musk-led company could have a record quarter in terms of deliveries of Model 3 cars. We at Amigobulls have long maintained that Model 3 is the central argument of Tesla's bullish thesis and continue to do so but risks still persist. Despite the latest pop which has helped Tesla shares to go past the $320 mark for the first time since October end, investors need to be cautious as Tesla stock is in for a major bearish crossover. TSLA stock could see a 'death cross' as early as the next trading session which we highlighted in our recent coverage.
Moving on to short interest data, TSLA stock short interest moved up by another 3.4%. Short interest rose to 31.16 million shares from 30.12 million shares at the end of July. As a percentage of float, short interest in Tesla stock is still very high, coming in at 24.9%. The days to cover was at 5 days, which is also high. Short interest in Tesla shares has now increased consecutively for 5 straight reporting periods which had cooled for a brief period.
Short interest in Micron Technology, Inc. (NASDAQ:MU) stock continues to rise despite the significant correction.
Investors betting against Micron stock in 2017 would have realized, what a big mistake they made as MU stock had more than doubled before seeing a significant correction. MU stock is still up more than 96% in the year-to-date. However, this hasn't discouraged a section of investors to bet against Micron stock as it features among the top 10 of most shorted stocks on NASDAQ in terms of the number of shares shorted. Short interest in Micron is up by 3.27 million shares or around 6.1% to 57.01 million from 53.73 million shares in mid-November. The shorted shares make up a 5.2% of its total float. Days to cover stood at 2 days. With earnings around the corner, the expectations from Micron stock are very high, an expectation of 6x earnings growth. Of late, MU stock is facing resistance at its 50-day SMA.
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