Netflix Heads for Rebound; Nvidia Sees Higher Short Volume

$Netflix(NFLX)$  's stock gained 1.4% Friday, as the streaming giant sought to stage a rebound after a surge in trading in borrowed shares that were sold short fueled the slump to its lowest level since 2024.

Short volume jumped to 7.82 million shares Thursday, from 3.97 million shares a day earlier, as the stock fell 4.72%. Yesterday, activist investor Ancora Holdings reportedly urged the board of $Warner Bros. Discovery(WBD)$   to reject the offer by $Netflix (NFLX.US)$ and reconsider a rival bid by $Paramount Skydance Corp(PSKY)$  . 

After the market closed Thursday, Securities and Exchange Commission filings showed some executives from Netflix sold shares, including Co-CEO Gregory K Peters who executed multiple stock sales, generating about $2.27 million. While the transactions may have been part of previously announced plans, Wall Street would have preferred news of executives buying the company's stock, instead of selling at a time when shares are languishing in a bear market. 

$NVIDIA (NVDA.US)$'s short volume rose 17.85 million shares Thursday, from 12.79 million a day earlier as two of the the biggest buyers of advanced AI chips, $Microsoft (MSFT.US)$ and $Amazon (AMZN.US)$ saw their shares languish in bear market, while $Meta Platforms (META.US)$ is down about 19% down from its peak. 

Wall Street has penalized hyperscalers amid debate whether their estimated spending of more than $600 billion in AI build out this year would bring in enough cash near-term to justify the cost. Nvidia has also struggled to post gains this year amid debate over the circular nature of its investments where it has poured money into companies that in turn use those funds to buy its chips. 

$Nomura Holdings (NMR.US)$'s short volume Thursday accounted for about 43.34% of the total shares hands that day, the highest short sale ratio among the companies with a market capital of more than $5 billion tracked by moomoo. Short volume rose almost 13% to to9 650,440 shares.

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