GME - Short-Sellers Just Won Their Bet on This Vaccine Stock
Short-sellers gained a lot of attention in recent days as they rushed to cover positions in rapidly rising stocks such as GameStop (NYSE: GME) . In this case, they lost their bets on the stock's decline -- and their money. But in some cases, the shorted stock does fall. And short-sellers come out on top. That happened last week with a high-flying coronavirus vaccine stock.
Vaxart (NASDAQ: VXRT) sank 58% in one trading session after data from its phase 1 clinical trial disappointed. Short positions make up more than 39% of the biotech company's float -- or the shares available to the public for trading. A lot of short-sellers probably closed out their positions with a win. As long-term investors, we may wonder whether short-sellers are right about Vaxart -- or was this just a one-time victory?
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Short-Sellers Just Won Their Bet on This Vaccine Stock