Three Biotechs Short-Sellers Have Targeted The Most
The biotechnology sector is among the market's top-performing sectors. Over just the past five trailing years, the SPDR S&P Biotech ETF has quadrupled, all while the broader market S&P 500 has risen by just 75%. That's a sizable outperformance on the part of biotech stocks. In fact, around one in 10 biotech stocks has seen its valuation double over the trailing 12-month period.
Short-sellers take aim at biotech
However, the incredible returns that biotech stocks have generated could also leave them exposed to the wrath of short-sellers (investors who make money when stock prices fall) if our latest stock market correction continues. Because biotech stocks' valuations are based more on future sales projections and emotions than those of stocks in any other sector of the market, they could find themselves under substantial pressure if fear replaces greed in investors' minds.
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Short-sellers take aim at biotech
However, the incredible returns that biotech stocks have generated could also leave them exposed to the wrath of short-sellers (investors who make money when stock prices fall) if our latest stock market correction continues. Because biotech stocks' valuations are based more on future sales projections and emotions than those of stocks in any other sector of the market, they could find themselves under substantial pressure if fear replaces greed in investors' minds.
Hey, check out all the research scientist jobs. Post your resume today!