Technology

Apple Short Interest Drops 1.3 Million Shares

Douglas A. McIntyre

Published: November 10, 2016 7:15 am

Last Updated: January 12, 2020 5:58 pm

Shares sold short in Apple Inc. (NASDAQ: AAPL) for the period that ended October 31 changed very little, down just 1.3 million to 54.7 million. News on Apple has been light lately, which might explain the lack of movement.

Apple’s shares are off 4.5% during the past month. Some investors worry that the new iPhone 7 will not sell well over the holidays. Others have voiced concern that Apple Watch sales have cratered. However, for most of the year, investors have been optimistic. The stock is up almost 19% in the past six months.

Another aspect of the tug of war over Apple’s share price is how long the market will have to wait for the iPhone 8. Barron’s recently reported:

UBS’s Steven Milunovich reiterated a Buy rating on Apple …, arguing that looking ahead to the iPhone 8, larges models and OLED screens could boost demand—although it may also lower margins.

Milunovich has a $127 price target on Apple. He argues that the adoption of OLED displays could transform the smartphone industry, and that Apple could release at least two models with OLED screens in fiscal 2018. He thinks OLED displays could increase functionality, strengthen customer rotation, and prompt substantial upgrades, although the bigger screen sizes do concern him in terms of pricing and gross margins.

Fiscal 2018 is a long time away.