Motley Fool Money Greed is Short
Feb 28, 2024
Asit Sharma, a Motley Fool analyst with sharp insights on market trends, discusses Beyond Meat's surprising stock surge and Apple’s halted Project Titan, revealing intriguing implications for both companies. Deidre Woollard interviews Carrie Sun, author of "Private Equity," to unveil the captivating and high-stakes world of hedge funds. The conversation dives into the shifting dynamics of investment strategies and the allure of exclusive opportunities in private equity, painting a vivid picture of today’s financial landscape.
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Apple's Project Titan: A Skunkworks Project
- Apple's Project Titan, focused on automotive ambitions, has been abandoned after nearly a decade.
- This highlights Apple's ability to invest in long-term R&D projects without significant consequences.
Beyond Meat's Short Squeeze
- Despite unimpressive earnings, Beyond Meat's stock surged 40% due to high short interest (38%).
- This reveals the risk of shorting heavily-shorted stocks, as even minor positive news can trigger a short squeeze.
Shorting High-Interest Stocks
- If shorting a stock with over 30% short interest, thoroughly research the company's fundamentals.
- Don't solely rely on negative narratives, as unexpected good news can lead to losses.