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New Data: Short Sellers Continue To Bet Against Alibaba

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New Data: Short Sellers Continue To Bet Against Alibaba
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Karl Loomes, market analyst for Astec Analytics, discussed with Benzinga the rising short interest in shares of Alibaba Group Holding Ltd (NYSE: BABA) is something investors and traders should put on their radar.

Loomes noted that since shares of Alibaba began trading on the New York Stock Exchange, borrowing volumes have been “climbing steadily,” implying short sellers are becoming more aggressive, even when shares began pulling back from all-time highs.

The analyst believes that short sellers are betting against the company's growth prospects and as such, expect to profit from a decline in share prices.

“Most recently over the past week or two, as Alibaba shares have again rallied a little, borrowing has once again picked up the pace, reaffirming the idea that short sellers are still expecting it to go down,” Loomes told Benzinga in an email.

Loomes explained that borrowing in Alibaba shares has almost doubled since the start of October and increased 22 percent since a decline in share prices in mid-December, and has since climbed 13 percent in the last week.

Image credit: Thomas Lombard, Flickr

Latest Ratings for BABA

DateFirmActionFromTo
Apr 2017Standpoint ResearchDowngradesBuyReduce
Apr 2017BenchmarkInitiates Coverage OnBuy
Mar 2017BarclaysInitiates Coverage OnOverweight

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Posted-In: Astec Analytics Karl LoomesAnalyst Color Short Ideas Exclusives Analyst Ratings Trading Ideas Best of Benzinga

 

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