Why GoPro Kept Soaring: "Short Utilization Is Near 100%"

Tyler Durden's picture

With GoPro up over 100% since its IPO (which the mainstream media decides indicates massive demand for the 'future' infrastructure monetization of camera-on-a-stick clips), it appears there is another much clearer reason for the surge. As WSJ reports, the utilization level - the percentage of shares available to loan that are actually being borrowed - is near 100%. As Astec Anaytics notes, it's rare for a stock to have such a high utilization level as the cost of borrowing GoPro shares, a proxy for short-selling activity, has “immediately become one of the highest in our system."

 

“Although sharp and strong moves are common in the first days of securities lending activity of a newly listed company, and often unrelated to short selling activity, these numbers are dramatic even by those standards,” Mr. Loomes said.

 

 

It appears the squeeze has come and gone and today's 9% tumble may just be the start...