Short-sellers are betting heavily against Etsy (ETSY), a struggling retailer. This is understandable. For a while, the firm opened its business to Chinese goods. The low-quality goods that lacked uniqueness destroyed the brand.
Etsy will need to spend heavily on advertising to win back its customers. It also needs to repair its relationship with its sellers. Unfortunately, Etsy sellers demand higher prices, albeit for good quality goods. PDD’s (PDD) Temu, Shien, and Alibaba (BABA) offer cheap goods. This increases competition for Etsy.
Bears hold a 12.48% short interest on ETSY stock.
Lithium miner Albemarle (ALB) attracted a 12.32% short interest. The firm has too high a capital expenditure level. This hurts its cash flow. Until the firm cuts costs further, ALB stock will underperform. Alternatively, lithium prices should eventually bounce back. Even as EV demand struggles, mine closers and an output cut should lift prices.
In the AI sector, Super Micro Computer (SMCI) attracted a 9.23% short interest. YTD, SMCI stock is up by over 100%. However, it closed at 50% below its 52-week as of last week. SMCI shares tend to move alongside that of Nvidia’s (NVDA) stock. When Nvidia posts its earnings report this week, it could force bears to cover their bet against the stock.
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