Ahead Of Its First Earnings Call, Demand To Short Groupon Is rumoured To Be Incredibly High

andrew mason groupon

Photo: Kevin Krejci / Flickr, CC.

Groupon reports Q4 earnings after the close tomorrow.Analysts at Morgan Stanley are expecting relatively good news: revenues above estimates, constrained marketing spending, and better than estimated EBITDA.

Morgan Stanley’s analysts think the stock is fairly priced as it currently is.

The gossip is that hedge fund managers with millions to bet don’t feel the same way.

VC Chris Dixon just tweeted that a hedge fund manager he knows looked into shorting Groupon stock ahead of tomorrow’s earnings, but backed off when he found out the interest rate on borrowing Groupon stock was a whopping 40%.

That is super high. It’s an indication that a lot of money has already been bet on Groupon’s stock ticking downward in the days ahead. 

(That doesn’t mean it’s more likely to dip, of course. Sometimes “the crowd” is very wrong.)

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