Market Overview

Kylie Jenner Tweet Lands Snap Short Sellers $163 Million Profit

Share:
Kylie Jenner Tweet Lands Snap Short Sellers $163 Million Profit
Related SNAP
Jim Cramer Shares His Thoughts On Alibaba, Five Below, Snap and More
IMX Dips In October, But Investors Remain Bullish
It's Still Early To Buy Snap - Cramer's Lightning Round (11/20/18) (Seeking Alpha)

After getting burned by a huge earnings beat earlier this month, Snap Inc (NYSE: SNAP) short sellers got some major help from Wall Street and Hollywood this week. Just days after a Citigroup downgrade sent Snap shares tumbling, celebrity Kylie Jenner confirmed Citi’s fears about the new version of Snapchat’s app with a single tweet Wednesday:

Snap shares tumbled 6 percent on Thursday, eliminating $1.3 billion in market capitalization. But for Snap short sellers, the tweet was welcome news after an earnings beat took many off guard earlier this month. According to financial analytics firm S3 Partners, Snap short sellers made $163 million in profits thanks to Jenner.

S3 analyst Ihor Dusaniwsky said on Friday that Snap has the largest outstanding short interest in the application software subsector with $1.99 billion in total short interest as of this week. It seems the earnings beat didn’t discourage short sellers much. S3 reports that Snap’s short interest is up another $522 million in the past month.

“Shorts have been building their SNAP short exposure since its IPO in March 2017 with short interest topping $2 billion for the first time this February,” Dusaniwsky said.

After a bumpy start to 2018, Snap short sellers are now back in familiar territory—making profits off of Snap’s falling share price. S3 reports that Snap short sellers earned a total of $285 million in profits last year, even after paying more than $171 million in stock borrowing costs.

Snap's stock was trading around $17.53 Friday morning.

Related Links:

Why Short Percent Of Float Is Meaningless For Most Popular Stocks

New Names, Old Classics Among Short Sellers' Top Stocks

Posted-In: Ihor DusaniwskyAnalyst Color Long Ideas Short Sellers Short Ideas Top Stories Movers Trading Ideas Best of Benzinga

 

Related Articles (SNAP)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
SCCOBradescoUpgrades42.0
PFODFJefferiesUpgrades0.0
TEDUJefferiesDowngrades5.8
INVVYJefferiesDowngrades0.0
UMPQPiperJaffrayUpgrades20.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Anika Therapeutics Shares Stunted By Increased Investment, Barrington Says In Downgrade

5 Biggest Price Target Changes For Friday