Xerox share is now trading at $3.69, down -10.32% TODAY.
It looks like this is not just poor performance anymore.
Wall Street is betting on the fall really hard: over 30% of all tradable shares are now being shorted.
If you do not know what is "shorting": it is when investors borrow shares to sell them now, hoping the price drops, so they can buy them back cheaper later and pocket the difference.
In other words: they are betting Xerox will fail, and the more the stock drops, the more money they make.
Right now:
- 70%+ of today’s trades are short-driven;
- Borrowing the stock to short it costs almost nothing, so funds are shorting it ruthlessly.
And no, this is not “the market being rough”: the broader market is actually flattish today.
Meanwhile, Xerox management is burning cash, posting negative earnings, loading more debt (Lexmark) and keeping a halved dividend that still looks unsustainable.
And yet, as the ground gives way, SB is pitching the same "Reinvention" story.
This is what it looks like when the market smells death and moves in to profit off it.
Now we're praying for a miracle on the Q1 earnings call... because if that call flops, we'll be talking about THE END.