Uber’s short-selling interest reaches US$768 million
The sum represents around 11.51% of the float, or 21.71 million shares.
Ride-hailing Uber Technologies’ short-selling interest hit US$768 million on the third day of trading after it debuted last Friday, with borrowing rates at around 3% to 5%, data tallied by financial analytics firm S3 Partners in a Bloomberg report revealed on Wednesday morning.
The sum represents around 11.51% of the float, or 21.71 million shares in total.
Uber’s shares were in the black for the first time on Tuesday, as the stock gained 7.71% or US$2.86 to close at US$39.96 on the New York Stock Exchange. But the number remained below its initial public offering price of US$45.
Pre-market trading for Uber on Wednesday showed the stock falling 1.15% or US$0.46, to US$39.50.
No lift for Lyft?
Compared to its rival Lyft, Uber’s stock is in a better shape as about 62% of Lyft’s float is currently shorted at an offer of 14%. Lyft has lost 30% since its debut in March.
In mid-April, short interest in Lyft reached US$1.08 billion, with 17.97 million shares short, data from S3 showed. As of that date, post-IPO short sellers have made over US$200 million dollars by betting against the stock, said S3’s predictive analytics chief Ihor Dusaniwsky.
As of early this month, punters have increased their bets against Lyft with more than 19 million shares or around 60% of the freefloat on loan, data from IHS Markit showed.
On Tuesday, Lyft’s share price closed higher, up by 4.92% or US$2.37, at US$50.52.
Short-selling is the opposite of purchasing stocks in the company for a long-term position. Punters borrow a stock and sell it with the hopes that the security will fall in price.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Live prices on most popular markets