Apple Inc. (NASDAQ:AAPL) flipped the world upside down when it announced its quarterly earnings report a couple of weeks ago. While they beat on both the top and bottom lines for the second quarter, revenue guidance for the third quarter was a lot weaker than most expected. Short sellers had to of been happy that Apple’s margin’s continued to decline, coming in at the lower end of the range.
Many investors and analysts were looking for (as well as pressuring) Apple Inc. (NASDAQ:AAPL) to raise its dividend. However, Apple decided to go in a different direction when they announced that they were increasing the stock buyback program from $10 billion to $60 billion. The $60 billion dollar buyback news was huge considering it represented about 15% of Apple’s total market cap at that time.
Rumors still exist about when or if Apple will launch a cheaper version of the iPhone. Speculation is rampant after one of Apple’s suppliers, Pegatron said that it plans to increase its workforce in China by as much as 40% in the second half of the year. Many shorts are banking on the announcement of a cheaper iPhone as well as the continued deterioration of Apple’s margins. Are they right? We will have to wait and see.
Netflix, Inc. (NASDAQ:NFLX): Provides Internet television network service that enables subscribers to stream TV shows and movies directly on TV’s, computers, and mobile devices in the United States and internationally.
Netflix has a market cap currently of $13.14 billion. As of Apr. 30, Netflix had short interest of 10.3 million shares, representing an increase of over three million shares since the end of March. The short float now stands around 20% with the days to cover ratio at 1.72 days. Analysts have an average price target of $210.00 on Netflix, which would reflect a decrease of roughly 10% from its recent closing price around $237.
The online streaming giant hit a new 52-week high and climbed back over $200 after the company’s earnings came in at the higher end of investors and analyst’s expectations two weeks ago. It seems that many shorts were forced to cover after the great earnings report that Netflix delivered. However, with the stock rising back around $220, you can assume that many shorts will likely be entering again in the picture soon. I expect the short interest numbers to keep climbing over the next several weeks as many investors will look to lock in some of those profits.
Baidu.com, Inc. (ADR) (NASDAQ:BIDU): Baidu, often called the Google of China, provides many different Internet search services. The company offers many programs to help internet users find information online, through links provided on its Website.
Baidu has a market cap currently of $32.47 billion. Baidu has $5.4 billion in cash with $1.9 billion in debt. The short float now stands around 4% with the days to cover ratio at 2.68 days. Analysts have an average price target of $113.18 on Baidu, which would reflect an increase of 20%.
Baidu missed analyst expectations posting weaker than expected revenues during its latest earnings report two weeks ago. However, future guidance was pretty much in line with estimates so shares have quickly rebounded since then. Shares have also increased because of its recent online video acquisition of PPS Net TV of which it bought for roughly $370 million.
Yandex NV (NASDAQ:YNDX): Yandex, often called the Baidu or Google Inc (NASDAQ:GOOG) of Russia, provides many different Internet search services as well. The company offers many programs to help internet users find information online, through links provided on its Website.
Yandex has a market cap currently of $8.80 billion. Yandex has over $348 million in cash and has no debt. The short float stands at less than 1% with the days to cover ratio at one day. Analysts have an average price target of $32.00 on Yandex which would reflect an increase of 20%.
