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According to a Bloomberg article, short bets on communication services stocks remained stable in July, with Omnicom Group being the most shorted stock in the sector. In contrast, Alphabet, the parent company of Google, was the least shorted stock. The average short position for the sector was unchanged from June.

According to a Bloomberg article, short bets on communication services stocks remained stable in July. Omnicom Group was the most shorted stock in the sector, while Alphabet, the parent company of Google, was the least shorted. The average short position for the sector was unchanged from June.

Short interest, the volume of shares sold short but not yet covered or closed out, is a key indicator of investor sentiment. In July, Omnicom Group saw 32.15 million shares sold short, representing 16.48% of its shares float. In contrast, Alphabet had 36.99 million shares sold short, which was the least among the S&P 500 communication services stocks [1].

The S&P 500's communication services sector, which includes companies like Meta Platforms, Netflix, and Microsoft, was up nearly 15% year-to-date as of July 2025. This sector's performance was slightly better than the broader market's 10% rise. Despite the sector's strong performance, short interest remained relatively stable, indicating that investors were cautious but not overly bearish.

The short interest ratio, also known as the "days to cover ratio," for Alphabet was 1.0 as of July 15, 2025. This ratio, calculated by dividing the number of shares sold short by the average trading volume, suggests a generally positive sentiment about Alphabet [2].

Institutional investors, including Hsbc Holdings PLC, Capital Fund Management S.A., and All Terrain Financial Advisors LLC, have reported short positions in Alphabet. However, the overall short interest decreased in July, indicating a decrease in bearish sentiment among investors [2].

The communication services sector's stable short interest in July reflects the sector's strong performance and investor caution. While the sector has seen significant growth, investors are maintaining a balanced approach, indicating neither extreme bullishness nor bearishness.

References:
[1] https://www.marketbeat.com/stocks/NASDAQ/GOOGL/short-interest/
[2] https://seekingalpha.com/news/4485493-omnicom-most-shorted-sp-500-communications-stocks-in-july-alphabet-least-shorted