Potential economic recovery coupled with the federal government’s unprecedented fiscal stimulus has the S&P 500 trading at all-time highs. But the U.S. unemployment rate, around 10%, has many investors skeptical of the strong market rally.
Some of the most heavily shorted stocks include Tesla, Boeing, and Apple. Tesla is often targeted by short sellers because of its high valuation and its history of missed production goals. Boeing is vulnerable to concerns about the global airline industry, while Apple faces competition from Chinese companies like Huawei.
Short sellers will continue to target these stocks in September, hoping to profit from a decline in share value. However, it is important to remember that not all shorted stocks will experience a decline in value.
As we move closer to the end of September, it’s important to keep an eye on the most shorted stocks. This is a list of stocks that have seen significant increases in short interest over the past month. When a stock is heavily shorted, it can be more volatile and more susceptible to price swings.
Here Are The Most Shorted Stocks of September 2020
Apple Inc. (AAPL) is one of the most shorted stocks on the market as of September 2020. This is largely due to the company’s high valuation and its vulnerability to a slowdown in demand for its products. Apple has also been hurt by the trade war between the United States and China, as its products are seen as luxury items that are likely to be hit hard by tariffs.
GSX Techedu (GSX)
GSX Techedu (GSX) is one of the most shorted stocks on the market in September 2020. The company, which provides online education services in China, has seen its share price fall sharply this year. GSX Techedu’s stock is down more than 60% year-to-date and is one of the worst performers in the S&P 500.
The company’s sharp decline in stock price has made it a target for short sellers. GSX Techedu has a high short interest ratio of 9.8, which means that nearly 10% of the company’s shares are currently being shorted.
There are several reasons why GSX Techedu has become a target for short sellers. The company faces significant competitive pressure from other online education providers, and its margins are under pressure as it invests in new initiatives.
The sea (SE) sector was the most shorted sector of the S&P 500 in September 2020. The five most shorted stocks in the sector were: Tesla (TSLA), Netflix (NFLX), Boeing (BA), Amazon (AMZN), and Facebook (FB). These stocks were all down significantly in September. Tesla was down the most, followed by Netflix, Boeing, Amazon, and Facebook.
Teladoc Health (TDOC)
Teladoc Health (TDOC) is one of the most shorted stocks on the market, with around 33% of its float being shorted as of September 2020. The company has been struggling to make a profit and has seen its stock price decline significantly over the past year. Many investors are betting that the stock will continue to fall, and they may be right – Teladoc Health is facing significant headwinds in the coming years.
Workhorse Group (WKHS)
Workhorse Group (WKHS) is one of the most shorted stocks of September 2020. The company has been in the news lately due to its ongoing efforts to restructure and emerge from bankruptcy. Workhorse’s plan has been met with skepticism by some investors, who believe that the company won’t be able to overcome its financial difficulties. As a result, Workhorse has become one of the most shorted stocks on the market.