Short interest in the highflying megacap tech stocks is at an all-time low
Data from a team of quantitative-equity strategists at Bank of America showed that short interest in the group, which includes seven of the eight most valuable publicly traded U.S. companies, has fallen to an all-time low at around 1% of the group’s aggregate market capitalization, as illustrated in the chart below.
In a note to clients, the team questioned who might be left to buy these megacap names as their valuation relative to the rest of the market reaches extremely stretched levels. According to BofA’s data, long-only funds are overweight every member of the group except Apple and Tesla. “Given our pessimistic view of the economy in the U.S., we think that equities there will fare quite poorly in the near term. But the biggest components of the S&P 500 might hold up better,” the team said in written commentary.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Wall Street drifts again in mixed trading as oil prices stay weighed downStocks are still largely stuck in place as Wall Street continues to recalibrate following its sharp recent swings.
Read more »
This Huntsville telecom stock took a massive hitWall Street continues to absorb big swings that have shaken financial markets of late.
Read more »
Drops aplenty on Birmingham and Alabama Stock ReportWall Street continues to absorb big swings that have shaken financial markets of late.
Read more »
The EV Apocalypse Isn't Here. Tesla's Problem Is Economic.Falling prices and profits have Wall Street nervous but the demise is exaggerated.
Read more »
Here are Wednesday's biggest analyst calls: Apple, Rivian, Datadog, DraftKings, Lucid, Target, Adobe & moreHere are Wednesday biggest calls on Wall Street.
Read more »
Arm sees full-year sales ahead of Wall Street, but weaker Q3 on deal delaySemiconductor company Arm Holdings (O9Ty.F), on Wednesday forecast fiscal full-year sales that beat Wall Street expectations, powered by a wave of companies designing new chips amid a boom in artificial intelligence applications.
Read more »