Short Interest Growing on Recent Tech IPOs
In his article for the Financial Post, Victor Ferreira reported that both Uber and Lyft have each accumulated over $1 billion in short interest in the weeks following their shaky IPOs. In evaluating the market for these shares, Ferreira cites Triton's Rett Wallace:
"The activity among short sellers may reflect the wider challenges that long investors have had in the last two months. Determining which companies will be successful before an IPO is one of the more difficult tasks for a retail investor to undertake, said Rett Wallace, co-founder of Triton Research.
'There really is no short cut, no quick and dirty rule you can apply to these things,' Wallace said.
Wallace uses a scoring system with 14 different components that ranks companies based on their offering documents. His scoring system was high on Zoom, giving it one of the best rankings Wallace has ever seen, because it was profitable, fast growing, offered reasonable transparency and 'offered itself at a valuation that I would say is not insulting.”'Lyft did the opposite, he said." Full article in the Financial Post - HERE