(PTON) – Peloton Short Seller Loss Estimated $ 600M After Blotout Q4 In 2020


After Peloton Interactive, Inc. (Nasdaq: PTON) Blowout fourth-quarter report, S3 Partners analyst Ihor Dusniewski, said traders can expect the peloton to continue for a short period of the year even now.

The stock is up over 200% in 2020.

On Thursday, the Peloton reported 172% revenue growth and $ 89.1 million in profit in the fourth quarter.

The peloton reported a net loss of $ 47.4 million in the same quarter a year earlier. Net subscribers for the quarter were 113% to 1.09 million.

According to Dusaniwsky, representing 2.7% of its float, the peloton has $ 492 million in short interest. Peloton has the lowest interest of any stock in the leisure products group.

Peloton Shorts Squeezed: Dasaniewski said the peloton’s lower interest has been steadily declining as the stock has stayed for a full year.

In the past month, he said that Peloton short sellers have covered 1.74 million shares of their positions as losses have increased year-over-year.

For the week earnings report, Peloton’s short interest rose by about 8%.

Year-on-year, Dusniewski said Peloton short sellers have invested $ 575 million in net-of-financing, mark-to-market losses, including $ 82 million in September losses through Thursday’s close Is included.

He said that peloton short sellers are squeezing for a short period of time throughout the year as their losses keep steadily increasing, and the company’s earnings report probably won’t change that dynamic.

“Today’s earnings results will do nothing to stop the squeeze, but rather the results and guidance will probably change the resistance knob and pull out more shorts,” said Dusanowski.

PTON Price Action: Shares of Peloton were down 3.37% at $ 84.79 on the last check Friday.

Take of Benzing: Short sellers clearly did not find what they were expecting in the peloton’s earnings report.

Yet they can find reason for optimism in the fact that the stock is reacting to such a low number of Fridays – a possible indicator that some peloton investors are taking advantage of their positions.

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Photo courtesy of peloton.

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