Apple’s short interest plummets

“Maybe the market has reacted so sharply to the rise in Apple Inc.’s stock that short sellers of the shares have abandoned them in droves,” Douglas A. McIntyre reports for 24/7 Wall Street. “The drop in short interest was more than that of any other company traded on Nasdaq in the most recently reported period.”

“Shares sold short in Apple dropped by 24.5 million to 53.7 million, a plunge of 31%,” McIntyre reports. “The drop in total shares was just ahead of Intel’s, which fell 23.6 million.”

“The trigger for the fall-off in the Apple short interest is likely two reasons. The first is the robust increase in its share price over the past three months,” McIntyre reports. “The stock has risen over 14% during that period. The second reason short sellers were likely exited was that, not only did Apple post strong earnings in the last quarter, but analysts expect demand will push iPhone sales to a record as consumers rush to buy the new iPhone 6 and iPhone 6 Plus.”

Read more in the full article here.

10 Comments

  1. “The stock has risen over 14% during that period” and the short sellers and some of the other manipulators no doubt have left, that’s a good stock performance, definitely some good leadership going on at Apple and fine products. I don’t think non of the sane people will be calling for Tim Cook’s resignation.

      1. Remember that guy “Joker”, whose account seemed to exist just to shout “Fire Tim Cook!” at any even vaguely negative Apple news? Haven’t heard from him in a while.

        ——RM

        1. Can’t say that I remember the “Joker” but if you are nostalgic, check out Jay Morrison’s post under the heading “Apple stock higher today on strong iPhone 6/Plus sales momentum.” I think it’s probably in the same vein but not as funny as Zune Thang.

  2. Short all you like today, tomorrow or the next day. Traders aren’t investors, they wouldnt know value if it bit them in their shorts.

    Apple is a keeper for years to come. Between real value, dividend income and a steady, reliable solid appreciation and a stellar historical track record, there is no better safe investment anywhere.

  3. With short interest gone, there probably won’t be a post earnings report pop on a Q1 door buster and the market will only care about Q2 (Apple watch revenue will likely not start in earnest until Q3).

    If Apple doesn’t forecast supply balance on iPhone until the end of Q2 (April 1), then there may be solid share growth. Guessing iPad is strong for Q1, but Q2 will be flat and no one will care is iPhone still is selling strong.

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