“Many short sellers appear to have unwound their bets against Apple this week, and a 6 percent fall in the stock price suggests they made money as investor worries about the company countered a record launch of its newest iPhone,” Noel Randewich reports for Reuters.
“Worries about slowing economic growth in China, an increasingly important market for Apple, have recently hurt the Cupertino, California company’s shares, sending them down about 19 percent from a record high in April,” Randewich reports. “On Thursday, Apple was down 2.2 percent at $107.83 on a report that chip suppliers were concerned the iPhone maker would cut chip orders for the fourth quarter.”
“Borrowing in Apple shares grew 32 percent through most of September, and then abruptly dropped 31 percent this week, according to lending data from SunGard’s Astec Analytics, which provides a strong glimpse into short-selling activity,” Randewich reports. “Short sellers borrow shares and sell them, hoping to buy them back later for less to return to the lender. During that time, they have to pay interest to the lender. This week, Apple’s stock has fallen almost 6 percent, suggesting short sellers wrapping up their bets may have made money.”
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MacDailyNews Take: This too shall pass.