Is xpeng eligible for short squeeze
8/8/2024 05:04am
**XPeng (XPEV) is not currently eligible for a short squeeze** based on the following analysis:
1. **Short Interest Ratio**: XPeng's short interest ratio is 4.12 days to cover. This indicates that it would take approximately 4.12 days for short sellers to close their positions if they were to buy back shares at the current rate of trading. While a short interest ratio this high suggests strong bearish sentiment, it does not reach the threshold where a short squeeze is typically considered imminent.
2. **Short Volume**: The off-exchange short volume ratio for XPeng is 62.11%. This indicates that a significant portion of the short interest is being covered through dark pool trades, which can make it more difficult to trigger a short squeeze.
3. **Market Sentiment**: The decline in XPeng's stock price by 45% year-to-date suggests a negative market sentiment. However, without a significant increase in price, a short squeeze is not likely to occur.
4. **Financial Performance**: XPeng's financial reports show growth in revenue and net income, with a net income growth rate of 44.33% and a total revenue growth rate of 54.42%. This growth could mitigate the risk of a short squeeze, as it indicates the company is expanding and potentially less vulnerable to a short squeeze.
In conclusion, while XPeng has a high short interest ratio, the current market conditions and financial performance do not strongly suggest an imminent short squeeze. However, if there were a significant positive development, such as a major strategic partnership or breakthrough in technology, that could potentially change the outlook and create conditions for a short squeeze.