When short-sellers (bears) bet heavily against companies on the S&P 500 (IVV), investors should not ignore them.
Enphase (ENPH) had a 23.22% short interest at the end of July. The energy technology firm dropped after it warned of lower revenue in the third quarter. It expects the U.S. residential solar market revenue to fall by 20% in the year. ENPH stock peaked at $130.08. The share price closed below $35 last week.
Moderna (MRNA), best known for its mRNA-based Covid vaccine during the pandemic, attracted an 18.29% short interest. In July, the firm posted a 39% Y/Y decline in net loss. Cost cuts helped cut expenses. The issue is the severe pressure from lower Covid vaccine sales. Moderna does not have an RSV vaccine or other products to offset its reliance on Covid vaccine sales.
Super Micro Computer (SMCI) bears held a 17.5% short interest. They lowered their short position from 18.6% on June 30. SMCI stock performed well this year. More recently, however, SMCI stock formed a bearish “double top” at over $60.
In the advertising space, Omnicom Group (OMC) had 16.5% short interest. Artificial Intelligence may easily create advertorial images and videos. This will cut into Omnicom’s business.
Campbell’s (CPB) had 13.6% short interest. Food suppliers face lower sales as inflation cuts into consumer spending.
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