Amazon, Nvidia, Tesla, Apple, Netflix Short Volume Dip
Short sellers targeting Big Tech took a brief breather Tuesday as they assessed whether there's room for declines for investor favorites $NVIDIA(NVDA)$
$Amazon.com(AMZN)$
Trading in borrowed Amazon shares that were sold short declined to 7.27 million shares Tuesday, from 9.53 million shares a day earlier as the stock edged higher, with bulls stepping in to take advantage of the more than 13% decline for its all-time high.
The latest agreement with OpenAI, if confirmed, further cement the partnership between the two companies. Last month, OpenAI agreed to a $38 billion deal for Amazon Web Services to provide the infrastructure for AI workloads.
Technical patterns are also leaning positive on the market leader in cloud services, with seven of the 15 most popular indicators signaling Amazon shares could now be oversold and sentiment could soon be turning bullish again. Only one is still negative, while the rest are neutral.
$NVIDIA (NVDA.US)$ shares resumed their decline Tuesday, touching their lowest in three weeks amid concerns that Amazon's Trainium chips could be eating into its market share for semiconductors that power artificial intelligence.
The decline came a day after short sellers eased up on their wagers against the market leader for AI chips. Nvidia's short volume fell on Tuesday to their lowest in about a week. At 10.84 million shorted shares, that short volume was about 7.3% of the total that changed hands Tuesday, when the stock gained for a second day.
After a decline of about 18% from an all-time high, nine of the 15 most commonly used technical indicators are now flashing signs that the stock could be oversold and the trend may soon turn bullish. Still, that wasn't enough to dissuade skeptics from selling the shares, sending the stock price declined another 2% Wednesday.
$Tesla (TSLA.US)$ short sellers are eased up on their wagers against the electric vehicle maker after shares climbed Tuesday to an all-time high.
$Apple (AAPL.US)$'s short volume declined to 6.21 million shares Tuesday, from 9.35 million shares as the stock edged higher after reports that the company is looking to release a foldable iPhone in the fall of 2026 and unveil a 20th anniversary edition of the smartphone the following year.
That could help the company expand its iPhone lineup to seven, from the usual five by 2027, The Information reported Tuesday, citing people familiar with the matter. That could help bolster investor enthusiasm for the company that has frustrated Wall Street over the slow progress of its AI initiatives.
$Netflix (NFLX.US)$ short sellers have been easing up on their wagers against the streaming giant as the stock tumbled 28% from its all-time high, weighed down by its $72 billion offer to buy $Warner Bros Discovery (WBD.US)$.
Short volume declined to 2.15 million Tuesday, from almost 4 million just a week ago. Still, the latest number represented about 6.28% of the total number of shares that changed hands that day, when the stock rebounded from the lowest in almost eight months.
The stock added another 2.4% Wednesday, building on yesterday's rebound. Warner Bros. board unanimously recommended that shareholders reject $Paramount Skydance (PSKY.US)$'s tender offer, arguing that "the terms of the Netflix merger are superior."
"WBD's merger agreement with Netflix is a binding agreement with enforceable commitments, with no need for any equity financing and robust debt commitments," the board said in its shareholder letter. "The Netflix merger is fully backed by a public company with a market cap in excess of $400 billion with an investment grade balance sheet."
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