Reuters
- GrubHub and Uber are the most lucrative short bets so far this year, according to data from S3 Partners, a financial analytics firm.
- The stocks became the most profitable shorts of 2019 after selloffs, unseating Tesla as the most profitable short. Tesla also saw a strong gain late in October.
- Here are the top 10 most profitable short trades this year.
- Read more on Business Insider.
Tesla has finally been overtaken by GrubHub and Uber.
GrubHub and Uber at the end of October officially rose to the top of the list of the most profitable shorts of 2019, according to data from financial-analytics provider S3 Partners. Tesla took the top spot in August, according to Bloomberg.
As of November 12, GrubHub short-sellers had mark-to-market gains of around $810 million, data from S3 show. Uber, in second place on the list, has $660 million in mark-to-market gains as of November 12.
GrubHub rose to the top of the profitable short bets list after a disastrous third-quarter earnings release sent the stock tumbling as much as 42%. During that single day, GrubHub short-sellers made as much as $504 million when the stock plummeted.
Uber shares have been trending down since the company’s IPO in May. Though their price increased slightly in October, the company gained the second-place spot on Tesla’s sudden rise late in the month.
In early November, multiple events weighed on shares and led to more gains for short-sellers. First, the company reported disappointing third-quarter earnings that sent shares down more than 7%.
Just a few days later, Uber’s post-initial public offering lockup period expired, which meant that millions of shares suddenly became eligible to trade. That sent the stock price down another 8%, and brought the company to its lowest valuation since it was privately held in 2015.
Tesla, on the other hand, recently broke free of a months-long slump when its third-quarter earnings beat Wall Street’s expectations, sending shares up as much as 20%. That pushed short-seller returns deeper into the red. As of November 12, Tesla shorts have $963 million in mark-to-market losses year to date, S3 said.
Since, Tesla stock has continued to rally, and it is now up more than 36% from its pre-earnings stock price. In 2020, the company could return to growth and see the stock surge to a new all-time high, according to a recent report from Jefferies.
Here are the top 10 most profitable short trades according to data from S3 Partners, ranked from least to most profitable.
10. Pfizer
Associated Press
Ticker:PFE
Market capitalization: Mega
Average short interest: $2.7 billion
Year-to-date stock borrow cost: -$7 million
Year-to-date mark-to-market return: $402 million
Source: S3 Partners
9. Mallinckrodt Plc
AP Images
Ticker:MNK
Market capitalization: Micro
Average short interest: $348 million
Year-to-date stock borrow cost: -$1.5 million
Year-to-date mark-to-market return: $452 million
Source: S3 Partners
8. Nio Inc.
Ng Han Guan/Associated Press
Ticker:NIO
Market capitalization: Small
Average short interest: $434 million
Year-to-date stock borrow cost: -$95 million
Year-to-date mark-to-market return: $475 million
Source: S3 Partners
7. Lyft
REUTERS/Mike Blake
Ticker:LYFT
Market capitalization: Large
Average short interest: $1 billion
Year-to-date stock borrow cost: -$64 million
Year-to-date mark-to-market return: $499 million
Source: S3 Partners
6. Occidental Petroleum
REUTERS/David McNew
Ticker:OXY
Market capitalization: Large
Average short interest: $1.1 billion
Year-to-date stock borrow cost: -$3 million
Year-to-date mark-to-market return: $507 million
Source: S3 Partners
5. Macy’s
Irene Jiang / Business Insider
Ticker:M
Market Capitalization: Mid
Average short interest: $1 billion
Year-to-date stock borrow cost: -$2.6 million
Year-to-date mark-to-market return: $536 million
Source: S3 Partners
4. PG&E Corp
Reuters
Ticker:PCG
Market capitalization: Mid
Average short interest: $454 million
Year-to-date stock borrow cost: -$1.3 million
Year-to-date mark-to-market return: $597 million
Source: S3 Partners
3. DuPont De Nemours Inc.
Reuters
Ticker:DD
Market capitalization: Large
Average short interest: $715 million
Year-to-date stock borrow cost: -$1.9 million
Year-to-date mark-to-market return: $613 million
Source: S3 Partners
2. Uber Technologies
Associated Press
Ticker:UBER
Market capitalization: Large
Average short interest: $1.5 billion
Year-to-date stock borrow cost: -$28.3 million
Year-to-date mark-to-market return: $660 million
Source: S3 Partners
1. GrubHub
Lucas Jackson/Reuters
Ticker:GRUB
Market capitalization: Mid
Average short interest: $1.1 billion
Year-to-date stock borrow cost: -$3 million
Year-to-date mark-to-market return: $810 million
Source: S3 Partners
