Short sellers are getting squeezed on Carvana, Wayfair, and Enovix
Shares of Carvana, Wayfair, and Enovix were ripping Thursday morning.
These companies don’t have too much in common from a business operations standpoint — one makes batteries, another needs batteries, and one sells furniture and rugs that really tie the room together.
What they do have in common right now though: traders were betting on their shares to fall, and each released quarterly earnings reports either after the market closed on Wednesday or on Thursday morning that weren’t as bad as feared, in one way or another.
As of mid-April, short interest as a percentage of equity float for these stocks ranged from 26% (Wayfair) to 31% (Enovix), according to exchange data.
Betting against two of these companies had paid off so far this year, with Carvana being the exception. Shares of the used-car retailer were up 78% heading into Thursday’s session versus Wayfair (-14%), and Enovix (-47%). For comparison, the S&P 500 Index is up 5.8 percent year-to-date.
Hat tip to Tom Hearden, senior trader at Skylands Capital, for bringing this to our attention.
