Trends
Short sellers target Reddit shares as stock slips
Data from analytics company Ortex on Wednesday showed shares of the social media forum Reddit have attracted a large number of short-selling bets on the site in the first few days after its IPO. Reddit’s stock sells out in bulk Based on 2.15 million Reddit shares out on loan, at least 7.1% of the co…
Headline
Data from analytics company Ortex on Wednesday showed shares of the social media forum Reddit have attracted a large number of short-selling bets on the site in the first few days after its IPO. Reddit’s stock sells out in bulk Based on 2.15 million Reddit shares out on loan, at…
Context
Data from analytics company Ortex on Wednesday showed shares of the social media forum Reddit have attracted a large number of short-selling bets on the site in the first few days after its IPO. Based on 2.15 million Reddit shares out on loan, at least 7.1% of the company’s free share float has been sold short, according to a preliminary Ortex estimate.
Evidence
Pending intelligence enrichment.
Analysis
Ortex co-founder Peter Hillerberg states “This is very high for a stock that just started trading, and is an indication that some market participants have a negative view of the future price of Reddit.” Also read: Reddit receives FTC inquiry on AI-related deals ahead of IPO Also read: Reddit Pro launch provides AI insights, publishing and ad engagement features Short sellers aim to profit by selling borrowed shares and buying them back later at a lower price.
Key Points
- Reddit has attracted a large number of short-selling bets on the site in the first few days after its IPO.
- Ortex co-founder Peter Hillerberg believes “This is very high for a stock that just started trading, and is an indication that some market participants have a negative view of the future price of Reddit.”
- Short sellers aim to profit by selling borrowed stock and then buying it back at a lower price.
Actions
Pending intelligence enrichment.
