Short sellers take aim at consumer stocks
Short sellers were apparently delighted in Facebook parent Meta’s plunging stock price today — but they’d be even happier if the consumer discretionary sector charted a similar path.
By the numbers: Consumer discretionary stocks are the most shorted sector, with short sellers holding 4.6% of their shares, according to S&P Global Market Intelligence.
- That’s more than double the S&P 500 average of 2.1%.
- The information technology sector ranks as the fourth most shorted industry. Meta's decline so far this year has been worth more than $2 billion to short sellers, Reuters reported.
The bottom line: Investors are betting that stocks that benefited from a spending binge by consumers are poised to cool off.