GrubHub and Uber have beaten out Tesla as the most profitable short bets this year. Here are the top 10 most lucrative shorts in the US.

Reuters

  • GrubHub and Uber are the most lucrative short bets so far this year, according to data from S3 Partners, a financial analytics firm.
  • The stocks became the most profitable shorts of 2019 after selloffs, unseating Tesla as the most profitable short. Tesla also saw a strong gain late in October.
  • Here are the top 10 most profitable short trades this year.
  • Read more on Business Insider.

Tesla has finally been overtaken by GrubHub and Uber.

GrubHub and Uber at the end of October officially rose to the top of the list of the most profitable shorts of 2019, according to data from financial-analytics provider S3 Partners. Tesla took the top spot in August, according to Bloomberg.

As of November 12, GrubHub short-sellers had mark-to-market gains of around $US810 million, data from S3 show. Uber, in second place on the list, has $US660 million in mark-to-market gains as of November 12.

GrubHub rose to the top of the profitable short bets list after a disastrous third-quarter earnings release sent the stock tumbling as much as 42%. During that single day, GrubHub short-sellers made as much as $US504 million when the stock plummeted.

Uber shares have been trending down since the company’s IPO in May. Though their price increased slightly in October, the company gained the second-place spot on Tesla’s sudden rise late in the month.

In early November, multiple events weighed on shares and led to more gains for short-sellers. First, the company reported disappointing third-quarter earnings that sent shares down more than 7%.

Just a few days later, Uber’s post-initial public offering lockup period expired, which meant that millions of shares suddenly became eligible to trade. That sent the stock price down another 8%, and brought the company to its lowest valuation since it was privately held in 2015.

Tesla, on the other hand, recently broke free of a months-long slump when its third-quarter earnings beat Wall Street’s expectations, sending shares up as much as 20%. That pushed short-seller returns deeper into the red. As of November 12, Tesla shorts have $US963 million in mark-to-market losses year to date, S3 said.

Since, Tesla stock has continued to rally, and it is now up more than 36% from its pre-earnings stock price. In 2020, the company could return to growth and see the stock surge to a new all-time high, according to a recent report from Jefferies.

Here are the top 10 most profitable short trades according to data from S3 Partners, ranked from least to most profitable.


10. Pfizer

Associated PressFILE – In this April 26, 2019, file photo, RELPAX migraine pills manufactured by Pfizer are arranged for a photo in Doral, Fla. Pfizer Inc., the biggest U.S.-based drugmaker, reported a 30% jump in second-quarter profits on Monday, July 29. (AP Photo/Wilfredo Lee, File)

Ticker:
PFE

Market capitalisation: Mega

Average short interest: $US2.7 billion

Year-to-date stock borrow cost: -$US7 million

Year-to-date mark-to-market return: $US402 million

Source: S3 Partners


9. Mallinckrodt Plc

AP Images

Ticker:
MNK

Market capitalisation: Micro

Average short interest: $US348 million

Year-to-date stock borrow cost: -$US1.5 million

Year-to-date mark-to-market return: $US452 million

Source: S3 Partners


8. Nio Inc.

Ng Han Guan/Associated Press

Ticker:
NIO

Market capitalisation: Small

Average short interest: $US434 million

Year-to-date stock borrow cost: -$US95 million

Year-to-date mark-to-market return: $US475 million

Source: S3 Partners


7. Lyft

REUTERS/Mike Blake

Ticker:
LYFT

Market capitalisation: Large

Average short interest: $US1 billion

Year-to-date stock borrow cost: -$US64 million

Year-to-date mark-to-market return: $US499 million

Source: S3 Partners


6. Occidental Petroleum

REUTERS/David McNewOil rig pumpjacks, also known as thirsty birds, extract crude from the Wilmington Field oil deposits area where Tidelands Oil Production Company, which is owned by Occidental Petroleum Corporation (Oxy), operates near Long Beach, California July 30, 2013. Occidental Petroleum posted a smaller-than-expected quarterly profit on Tuesday, hurt by lower oil prices in the Middle East and North Africa, where the fourth-largest U.S. oil company is considering an exit.

Ticker:
OXY

Market capitalisation: Large

Average short interest: $US1.1 billion

Year-to-date stock borrow cost: -$US3 million

Year-to-date mark-to-market return: $US507 million

Source: S3 Partners


5. Macy’s

Irene Jiang / Business Insider

Ticker:
M

Market Capitalisation: Mid

Average short interest: $US1 billion

Year-to-date stock borrow cost: -$US2.6 million

Year-to-date mark-to-market return: $US536 million

Source: S3 Partners


4. PG&E Corp

ReutersFILE PHOTO: Electricity poles are seen near PGE Turow Power Station in Bogatynia

Ticker:
PCG

Market capitalisation: Mid

Average short interest: $US454 million

Year-to-date stock borrow cost: -$US1.3 million

Year-to-date mark-to-market return: $US597 million

Source: S3 Partners


3. DuPont De Nemours Inc.

ReutersFILE PHOTO: FILE PHOTO: A DuPont logo is pictured on the research centre in Meyrin near Geneva

Ticker:
DD

Market capitalisation: Large

Average short interest: $US715 million

Year-to-date stock borrow cost: -$US1.9 million

Year-to-date mark-to-market return: $US613 million

Source: S3 Partners


2. Uber Technologies

Associated PressFILE – In this May 10, 2019, file photo the statue of Fearless Girl stands in front of the New York Stock Exchange before Uber holds its initial public offering. Uber reports financial results Monday, Nov. 4. (AP Photo/Mark Lennihan, File)

Ticker:
UBER

Market capitalisation: Large

Average short interest: $US1.5 billion

Year-to-date stock borrow cost: -$US28.3 million

Year-to-date mark-to-market return: $US660 million

Source: S3 Partners


1. GrubHub

Lucas Jackson/ReutersGrubHub CEO Matt Maloney (C) applauds after ringing the opening bell before the company’s IPO on the floor of the New York Stock Exchange in New York April 4, 2014.

Ticker:
GRUB

Market capitalisation: Mid

Average short interest: $US1.1 billion

Year-to-date stock borrow cost: -$US3 million

Year-to-date mark-to-market return: $US810 million

Source: S3 Partners

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.