Bears Flee Microsoft, Pile Into Wolfspeed

Short sellers made a dramatic exit from MSFT this week. Short interest collapsed 94% in seven days to just 0.06% of free float. Bears are clearing positions ahead of Microsoft's July 29 earnings report.

The reversal is striking. MSFT SI now sits at a multi-month low. Cost to borrow is just 0.33%. The bulls have the field.

At the other extreme, WOLF remains the most heavily shorted US stock with over $500M market cap. Short interest stands at a staggering 79.7% of free float. Availability is zero — there are no shares left to borrow. The semiconductor firm has surged 162% in three months despite the bearish pressure.

YEXT saw the biggest weekly SI jump. Bears added 5.1 percentage points in a single week, pushing SI to 13.5% of float. LEVI also attracted fresh shorts, up 2.85 points to 10.7%.

On the squeeze side, ULCC shed 4.4 points of SI in a week. Shorts are also covering WIX, which dropped 2.6 points to 28.5%.

LUCK carries the highest short score of any $1B+ stock. Days to cover hit 47. Cost to borrow is 27.8% APR. That squeeze potential is real.

KDK has a cost to borrow of 204% APR — the most expensive borrow on the market right now.