• Research

Jul 26, 2018

S3 Analytics: Facebook Shorts up $1.1 billion on 19% Price Decline

Facebook Inc.’s (FB) stock price declined by 19% on a slower growth outlook and weaker than expected 2nd quarter ad revenues. Short sellers, who had covered 12 million shares of their short positions since early April, had kept their Facebook short exposure stable over the past week ahead of earnings. The pause in short covering proved prescient as the today’s stock price decline earned short sellers $1.05 billion of mark-to-market profits.

Facebook shares shorted is 25.4 million shares, 1.07% of its float, and its short interest is $5.52 billion. Facebook is the 6th largest U.S. equity short behind Tesla Inc (TSLA) and its FAANG cohorts.

Facebook’s 19% stock price decline gave Mark Zuckerberg a $17 billion mark-to-market loss, while Facebook short sellers are up over $1 billion in mark-to-market profits. Shorts have nearly wiped out their year-to-date losses and are down only $43 million in mark-to-market losses in 2018.

Want deeper insight into the above analysis? Contact:
Ihor.Dusaniwsky@S3Partners.net
Managing Director Predictive Analytics, S3 Partners, LLC
The information herein (some of which has been obtained from third party sources without verification) is believed by S3 Partners, LLC ('S3 Partners') to be reliable and accurate. Neither S3 Partners nor any of its affiliates makes any representation as to the accuracy or completeness of the information herein or accepts liability arising from its use. Prior to making any decisions based on the information herein, you should determine, without reliance upon S3 Partners, the economic risks and merits, as well as the legal, tax, accounting and investment consequences, of such decision.


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