Heavily shorted e-commerce stocks surge in internet retail rally (NASDAQ:REAL) - Seeking Alpha

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A rebound for galore stocks populating the e-commerce abstraction was dotted with a peculiarly beardown upward determination from immoderate heavily-shorted stocks.

Notable names rallying connected Tuesday included The RealReal (NASDAQ:REAL) +17.94%, Stitch Fix (NASDAQ:SFIX) +10.22%, Revolve Group (RVLV) +5.43%, Carvana (NYSE:CVNA) +9.48%, Solo Brands (NYSE:DTC) +12.08%, Blue Apron Holdings (APRN) +9.08%, Wayfair (W) +6.05%, and Newegg Commerce (NEGG) +11.08%. In each case, double-digit percentages of the stocks’ floats are held short, with galore percentages rising supra 30%. For example, abbreviated involvement successful Blue Apron stands astatine implicit 39%, according to SeekingAlpha data.

To beryllium sure, the rally among online retailers was not resigned to lone those retailers with elevated levels of abbreviated interest. Farfetch (FTCH) +9.84%, MercadoLibre (MELI) +4.84%, and Coupang (CPNG) +4.98% were among gainers connected the day, besides indicating the planetary upward inclination among e-commerce stocks connected Tuesday.

Additionally, the crisp summation for The RealReal and Farfetch whitethorn constituent to continued assurance successful luxury retailers contempt macroeconomic troubles. Luxury consumers, understandably little impacted by inflation, person shown a beardown proclivity to proceed large summons purchases into year-end, arsenic shown successful caller reports from LVMH (OTCPK:LVMUY).

That inclination apt extends beyond e-commerce arsenic well, with persistently affirmative postulation to luxury retail hot-spots noted by information analytics steadfast Placer.ai.

“Looking up to the vacation season, affirmative trends successful the luxury section store abstraction are apt to proceed arsenic these brands are a destination for affluent consumers buying for big-ticket gifts,” a report published connected Monday stated. “Analysis of immoderate of the astir fashionable corridors – Michigan Ave successful Chicago, Walnut Street successful Philadelphia, 5th Ave successful New York, Rodeo Drive successful Beverly Hills, and Brickell District successful Miami – revealed beardown visits heading into the vacation season.”

The study noted that the postulation trends should beryllium affirmative not lone for the highest-end retailers similar LVMH, but Macy’s (M) subsidiary Bloomingdales, Nordstrom (JWN), and Neiman Marcus. Both Canada Goose (GOOS) +5.05% and Tapestry (TPR) +5.24% besides roseate connected Tuesday.

Rather conspicuously, immoderate of the largest e-commerce players similar Amazon (AMZN), Etsy (ETSY), and eBay (EBAY) lone edged somewhat upward.

Read much connected SeekingAlpha contributor Albert Lin’s expectations for Amazon arsenic it prepares its Q3 study for Thursday evening.