2 reasons why investors are shorting Nvidia
#Nvidia #shortselling #stockmarket #yahoofinance #mag7
As Nvidia (NVDA) continues to dominate the tech sector, it has become one of the most heavily shorted stocks. S3 Partners managing director Ihor Dusaniwsky joins Catalysts to discuss some of the biggest tech names eyed by short sellers. When it comes to Nvidia, Dusaniwsky explains that investors are shorting "because it's an overheated stock." While the run-up has been monumental, he notes that "it's got to come back to Earth." He also explains that some investors are shorting the stock "because it's a hedge to the market. People are shorting Nvidia to hedge their entire portfolio and hedge their tech holdings. So you've got two different types of short selling going on in this name." Dusaniwsky also points to Apple (AAPL) as a heavily shorted name, explaining that it's not fundamental investing: "We're looking at a lot of traders that are looking at momentum and technical graphs and saying, 'Hey, I want to short this name. I want to go long this name'... More traders are going and looking at recent activity in the short side and kind of running along with that crowd or getting ahead of the crowd getting out of a name." For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Melanie Riehl
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