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Alibaba Short Interest Rises As Lockup Expiration Nears

The last couple months have not been good for shares of Alibaba (NYSE:BABA). While the stock soared after the IPO to $120 a share, investors have bailed on the name and the latest earnings report did not satisfy. Recently, shares have been trading in the low $80s, and an important lockup expiration is nearing. Today, I'll detail how short interest recently hit a new high for the stock, and why we might see a further increase.

Alibaba shares began trading in September 2014, so we don't exactly have years of short interest data to analyze. However, there have been 11 official updates from Nasdaq, and as some might expect, short interest has risen over time. In the chart below, you can see a history of Alibaba short interest since the IPO. Read more