Apple iPhone Duo Launch Fails to Quell Short Seller Concerns
Apple's highly anticipated iPhone Duo launch has drawn high-stakes retail demand, but beneath the excitement lies lingering supply chain hurdles and a significant short volume spike that raises questions about the tech giant's valuation.
Trading in borrowed Apple shares sold short rose to 9.53 million on Wednesday from 6.23 million a day earlier, representing 14.52% of shares traded that day. The stock slipped 0.3%, despite receiving positive analyst feedback.
The iPhone Duo's merge of pocketable and tablet-sized canvases has the potential to increase Apple's total iPhone revenue by 5% and overall revenue by 2.5% in fiscal year 2027, according to DeepWater Asset Management Managing Partner Gene Munster.
Despite initial enthusiasm, Apple saw a net outflow of $102.9 million on Wednesday with total outflows reaching $3.34 billion against inflows of $3.23 billion. Large and extra-large institutional block orders showed balanced-to-negative capital movement, signaling profit-taking or cautious repositioning by smart money.