Sold Heavy | Summary and Q&A

TL;DR

Corsair Gaming (CRSR) released strong earnings, beating revenue and EPS expectations, but experienced a sudden drop in the stock price after hours due to a suspected short-selling manipulation tactic.

Key Insights

• 🍰 Corsair Gaming is one of the most heavily shorted stocks in the market, with over 30% of its float being shorted.
• 💓 The company's strong earnings report, including beating revenue and EPS expectations, should have contributed to a positive stock price reaction.
• 💦 The sudden drop in the stock price after hours suggests potential manipulation by short sellers, who may have tried to kill the price momentum.
• 😒 Short sellers can use tactics like flooding the market with shares to disrupt price movement and create doubt among other investors.
• 🤝 Short-term trading and options strategies can be challenging when dealing with heavily shorted stocks due to the possibility of manipulation.
• ⏳ Long-term investors may see the manipulation as an opportunity to buy shares at a lower price, as short sellers can only play these games for a limited time.
• 🍉 Corsair Gaming's long-term prospects and performance should outweigh short-term manipulation tactics.

Transcript

folks what i'm about to show you in this video is going to be very very important because whether you care about this stock we're going to talk about in this video or not this is going to be highly relevant to stocks you personally own or you will own in the future and we're talking about stocks that are heavily shorted and uh what i just witnessed... Read More

Questions & Answers

Q: Why is Corsair Gaming considered a heavily shorted stock?

Corsair Gaming has attracted a significant amount of short interest, with about 30% of its float being shorted. This indicates that many investors are betting against the stock's performance.

Q: What were Corsair Gaming's earnings results?

Corsair Gaming beat expectations by reporting revenue of $510 million and EPS of 35 cents, surpassing estimates of $495 million and 25 cents, respectively.

Q: Did Corsair Gaming provide positive guidance?

Yes, Corsair Gaming's guidance for 2022 revenue was slightly above analysts' expectations, with a midpoint estimate of $2 billion.

Q: Why did the stock price experience a sudden drop after hours?

The sudden drop in the stock price after hours is suspected to be a manipulation tactic by short sellers. They may have sold a massive amount of shares all at once, which overwhelmed the market and caused the stock price to plummet.

Summary & Key Takeaways

• Corsair Gaming is heavily shorted, with about 30% of its float being shorted.

• The company reported strong earnings, beating revenue and EPS expectations.

• Despite the positive earnings report, the stock experienced a sudden drop after hours, indicating potential manipulation.