On Wednesday, Lyft Inc (LYFT) posted its 1st quarter revenues that increased by +23% year-on-year and ridership that increased by +3%. Its stock price rose by over +15% in aftermarket trading and followed that up with a +21.67% run-up today.
Lyft’s short interest is $507 million, 19.39 million shares shorted, 9.25% of its float.
Shorts were relatively inactive ahead of its earnings announcement with shares shorted decreasing by -44 thousand shares, -0.23%, over the last month and increasing by +275 thousand shares, +1.44%, in the week prior to earnings.
Uber Technologies (UBER) just posted a larger than expected 1st quarter loss, with two-thirds of the losses generated from its non-core business investments. Bookings were up +8%, primarily due to Uber Eats activity. Uber was up over 11% in today’s trading but is following that up with almost -3% drop in today’s aftermarket.
Uber’s short interest is $1.46 billion, 52.32 million shares shorted, 5.92% of its float.
UBER shorts were cutting their exposure ahead of its earnings announcement with 4.07 million shares, -7.22%, of short covering over the last month and 5.50 million shares, -9.52%, of short covering over the last week.
UBER and LYFT are the largest and 4th largest shorts in the domestic trucking sector:
And LYFT and UBER were two of the most profitable shorts in the trucking sector.
While LYFT short sellers were not expecting a strong quarter and kept increased their short exposure slightly, UBER shorts were actively cutting their exposure in anticipation of a stronger than expected quarter. Both short sellers made the wrong choice at the fork in the road.
LYFT shorts were down -$110 million in mark-to-market losses today, bringing year-to-date profits down to +$166 million and UBER shorts were down -$163 in mark-to-market losses today, dragging year-to-date P\L into the red, down -$38 million.
LYFT is down -1.16% in aftermarket trading, recouping +$7.2 million of mark-to-market profits for short sellers, while UBER is down -2.36% in aftermarket trading, adding +$38.2 million of profits to the shorts.
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Managing Director Predictive Analytics, S3 Partners, LLC
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