Short interest plummets on four Internet stocks

|
Includes: CNET, DCLK, MOVE, NILE
by: David Jackson

American Technology Research analyst Mark Mahaney does a great job of compiling short interest data on 'Net stocks. This morning he reports significant month over month changes in short interest in four stocks:

  • CNET down 13%
  • DCLK down 17%
  • HOMS down 32%
  • NILE down 11%

Short interest on NASDAQ stocks is generally down, as hedge funds covered short positions to participate in the recent rally. But declining short interest is actually bearish for stocks, as it means there's less pent-up buying demand.

Full disclosure: at the time of writing I'm short CNET.