• hello@whatnews.in
  • Home
  • Business
  • World
  • Contact US
Home»business»Short sellers are up $114 billion this year with winning bets against Tesla and Netflix
business

Short sellers are up $114 billion this year with winning bets against Tesla and Netflix

whatnewsBy whatnewsJanuary 25, 2022No Comments2 Mins Read
Facebook Twitter LinkedIn Telegram Pinterest Tumblr Reddit WhatsApp Email
Share
Facebook Twitter LinkedIn Pinterest Email


Traders work on the floor of the New York Stock Exchange.

Brendan McDermid | Reuters

Short sellers are reaping huge profits this year, as the stock market’s brutal bloodbath fuel their bearish bets.

The short-selling cohort has gained $114 billion in January mark-to-market profits as of Friday’s close, up 11.6% for the year, according to data from S3 Partners’ Ihor Dusaniwsky.

The sell-off in the new year has been severe. The S&P 500 briefly dipped into correction territory Monday, falling more than 10% from its record high. Technology shares bore the brunt of the washout, with the Nasdaq Composite dropping about 12% in January, now sitting almost 15% below its all-time high. The tech-heavy benchmark pulled off a stunning turnaround Monday, however, closing in the green after losing as much as 4.9%.

The stock rout was triggered by a potential policy shift from the Federal Reserve. The central bank has signaled interest rate hikes this year as well as a tapering of asset purchases and a balance sheet reduction. The potential action would mark an aggressive hawkish tilt for the Fed after nearly two years of ultra-easy monetary policy to support the economy from the pandemic.

“While longs have been getting trounced, short sellers have seen widespread profitable trades in this market wide downturn with 79% of all short side money producing profitable returns in January,” said Dusaniwsky, the firm’s managing director of predictive analytics.

Short sellers seek to profit by anticipating declines in the value of securities. A short seller borrows shares of a stock and sells these borrowed shares to buyers willing to pay the market price. As the stock price falls, the trader would buy it back for less money, pocketing the difference.

The most profitable short bet this year has been against Tesla, which experienced a near 12% decline. Short sellers betting against the electric vehicle company have gained $2.3 billion in mark-to-market profits as of Friday, according to S3.

Bets against Netflix have also been particular lucrative. Shares of the streaming giant have fallen a whopping 35% this year after the company admitted that streaming competition is eating into its subscriber growth. The drastic sell-off has translated into a $1.6 billion gain for short-sellers.



Source link

Post Views: 6
bets Billion Breaking News: Business Breaking News: Investing Breaking News: Markets business news Investment strategy Markets Netflix Netflix Inc sellers Short Stock markets Tesla tesla inc wall Street winning year
Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
Previous ArticleBudget must guide the contours of the new FTP
Next Article Buying the dip? Avoid lump-sum plays into equities
whatnews
  • Website

Related Posts

U GRO Capital’s Rs 100-cr NCD issue subscribed 1.44 times

May 21, 2022

To detect security lapses: Sebi wants cyber audit by bourses to be twice a year

May 21, 2022

Coming soon: Caller’s name as per KYC record to flash on phone screen

May 21, 2022
Add A Comment

Leave A Reply Cancel Reply

Subscribe to Updates

Get the latest sports news from SportsSite about soccer, football and tennis.

Advertisement
About Us
Privacy Policy
Contact Us
© Copyright 2022. All rights reserved.