Wall Street Loads Up on Meta Shorts Despite 25% YTD Gain

Good Morning,

– Truly yours, Fred Frost

Don’t Buy Another Stock Until You See This

This tool shows when a stock’s about to explode (or collapse). Hedge funds pay $20K/month — you get it for $7. Get 3 stocks flashing "BUY" now + a free guide to trade them.

By clicking the link above, you agree to receive periodic updates from our sponsor.

📉 Yesterday's Market Recap

Tuesday saw a choppy market with the Dow scraping a minor gain, while the Nasdaq took a beating, dragged down by tech and growth stock sell-offs. Viking Therapeutics’ 42% plunge stole headlines, but AI darlings like Palantir and Nvidia also bled red. Here’s what moved the needle.

• Viking Therapeutics Tanks 42%: Disappointing Phase 2 obesity pill data splits analysts between 'Strong Buy' and 'inferior drug' camps. → Benzinga


• Nasdaq Slumps on Growth Stock Woes: Palantir dives nearly 10% and Nvidia drops 3.5%, fueling broader tech sector declines. → Investors.com


• Global Shares Slip: Tech-heavy declines in Asia and Europe mirror Wall Street’s AI stock retreat. → ABC News

📉 Daily Performance Snapshot

🔭 What to Watch Today

Today’s calendar brings earnings reports, policy signals, and market reactions that could sway your portfolio. Keep an eye on these developments for potential volatility or opportunity.

💡 Opportunity Watch

Amid today’s turbulence, a few sectors and stocks stand out for potential upside if you’re willing to play the long game. Here’s where the smart money might look.

• Waste Management (WM): A steady performer with a ‘Sector Outperform’ rating and stable demand regardless of market swings. → MarketBeat
• ASE Technology (ASX): Well-positioned in AI chip packaging with growth projected into 2026 as data centers expand. → Seeking Alpha
• Indian Tech Stocks: Nifty’s rally above 25,000 suggests momentum in IT and FMCG for global exposure. → Stocktwits

Next High-Velocity Stock Alert Drops Soon

Missed INM’s 1,900% move? Our alert system signals when a small-cap’s about to pop. The next one is days away — and early action matters.

By clicking the link above you agree to receive periodic updates from our sponsor.

🔥 The Big Bullet

Wall Street Bets Against Meta More Than Microsoft and Palantir Combined

What happened: Short interest in Meta Platforms Inc. has surged, surpassing the combined value of short positions in both Microsoft and Palantir. Traders are increasingly betting against Meta despite its strong stock performance this year, with shares up more than 25%. This rising skepticism appears linked to concerns about the company’s heavy investments in artificial intelligence and the metaverse. Meta now tops the leaderboard for tech stock shorts, outpacing even historically polarizing names.

Why it matters: This shift suggests that investors are questioning the long-term payoff of Meta’s aggressive growth strategy. Short sellers tend to target companies they believe are overvalued or vulnerable to setbacks. While Meta’s year-to-date gains reflect optimism about its AI tools and ad recovery, the swell in bearish bets reveals a split in market sentiment. If these short positions build further, they could put downward pressure on the stock or trigger volatility. Investors may read the sharp divergence between Meta and peers like Microsoft as a sign of tightening scrutiny on high-spending tech firms. Rising interest rates and inflation concerns may also be prompting more caution toward companies with long-term return horizons.

What’s next: Watch for Meta’s next earnings report and updates on its AI and metaverse investments. These disclosures will likely shape whether short sellers maintain or reduce their positions. Also, institutional moves — such as changes in hedge fund exposure — could shift sentiment quickly. Broader tech sector weakness, like the current drag on Big Tech stocks, might amplify Meta’s risks if it underperforms expectations. On the flip side, stronger-than-expected AI monetization or cost control could squeeze out short sellers and reignite bullish momentum.

• Meta Platforms Sees Bigger Short‑Interest Surge Than Palantir as Wall Street Bets Big Against It – AP News
• Why Ringing the Alarm on Palantir’s Valuation Might Miss the Mark – Motley Fool
• AI Showdown: Palantir vs. Microsoft — A Valuation‑Versus‑Diversification Debate – AInvest

Unlock 2025's Private Market Edge

Accredited investors: Want access to pre-IPO deals, VC funds, and private placements? Get the 2025 Accredited Investor Playbook—your roadmap to top-tier opportunities.

By clicking the link you are subscribing to The Investor Newsletter Daily Newsletter and may receive up to 2 additional free bonus subscriptions. Unsubscribing is easy. Full disclosures found here.

🧭 Policy & Market Ripples

• UK Inflation Spikes to 3.8%: Airfare and food costs drive the highest rate since January, dimming rate cut hopes for 2025. → ABC News
• Home Depot Confirms Tariff Price Hikes: Modest increases on select items due to higher import costs, despite sales growth. → CNN
• Air Canada Strike Ends: Tentative deal with flight attendants resumes operations after grounding 700 daily flights. → Fox Business