Nvidia: Why investors are shorting the stock ahead of its split

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Stock Split News

Momentum Stock,Nvidia

Nvidia's (NVDA) market cap briefly surpassed $3 trillion ahead of the company's planned 10-for-1 stock split on Friday after the market close. S3 Partners...

) market cap briefly surpassed $3 trillion ahead of the company's planned 10-for-1 stock split on Friday after the market close. S3 Partners Managing Director Ihor Dusaniwsky joins Market Domination to discuss how the move will affect short selling.

So uh we're seeing a lot of activity uh and uh you know, there's something to be said about people shorting ahead of the stock split and, and what does that say?I mean, you know, iii I have seen some research that indicates that say in the 12 months on average following a split, that stocks tend to perform relatively well.

It's one of the largest, uh, shorts in the, uh, computer and, uh, and uh retail sector, um, there hasn't been that much short selling recently. So, uh so this has been a painful trade on the short side and we're seeing a lot of shorts get out of the market.Igor because I've seen some chatter recently that it's not just shorts that are getting out of the market with something like that, that generally in the market there is lower short interest.We're, we're seeing that the short interest has actually gone up over the last 30 days.

And you know, when you look at it, you know, a lot of the short selling or most of the short selling is done by the big institutions, hedge funds and such.Um, you'll be looking at stocks that they're looking to short for, you know, profits for an alpha trade.So, you know, 12% of the entire short book in the US is, is in mag seven stocks.And also they're using it as a hedge to the entire portfolio.

You can get in and out of the position as opposed to, you know, going in and out of Bitcoin itself uh or paying a premium in these ETF S. So, you know what a lot of, a lot of shorts are saying?

 

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