Uber Short Sellers Are Cashing Out In Droves
S3 analyst Ihor Dusaniwsky said this week Uber’s short position is down 48% in that time. Uber shorts added another $251.1 million to their gains in the last month alone, although the past week has eaten into the profits of the remaining short sellers. Even after all the covering, Uber still has more than $834 million in short interest remaining. “Such substantial and hurried short covering is usually a sign of a short squeeze, traders pulling their fingers away from a hot stove, but in this case it may be a signal of a market bottom for UBER after its IPO lockup expiry,” Dusaniwsky said. Short covering is a good sign for Uber bulls because it's a signal short sellers see little additional downside in the near-term. However, for the Uber bounce to maintain its momentum, the company will ultimately need to demonstrate improved fundamental metrics and a viable path to long-term profitability.