Short Positioning in FAANG Up 8% Since Mid-August - S3 Partners

S3 Partners Director Brett Weiss highlights increasing short-interest positioning since August 15th in the 'FAANG' Internet Technology companies, Facebook (NASDAQ: FB), Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), Netflix (NASDAQ: NFLX) and Alphabet (NASDAQ: GOOG) / (NASDAQ: GOOGL).

Since mid-August, dollars at risk in FAANG companies have increased by $1.93 billion or 7.6%, with estimated dollars at risk at $27.3 billion for the group. Netflix bears led the short-positioning increase, adding $910.5 million in dollars at risk, while Amazon and Facebook saw increases of $501.8 million and $493.9 million, respectively.

Short sellers in Apple have generated the best performance from 'FAANG' shorts since August 15th, resulting in $253.1 million mark-to-market profits, followed by Amazon bearish traders earnings $176.3 million in mark-to-market profits on short positions. Netflix shorts appear to be in the most pain, taking $388.6 million in mark-to-market losses over the same period.

Broad markets remain just off all-time highs and costs to borrow 'FAANG' shares remain at their lowest levels, providing sufficient supply for short-sellers to add to positions. Bearish market participants since August 15th have only lost $22.5 million in mark-to-market profits or -0.08% return, suggesting this could be the start according to Weiss, "as the market continues to hit high’s almost daily, these in favor companies could see a higher demand to add to shorts... bearish investors adding to an already elevated level of short interest the outlook for the FAANG stocks is troubling."

Source: www.S3partners.net

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