Apple Short Sellers Face Fresh Resistance After iPhone Duo Debut: Short Seller Tracker

$Apple (AAPL.US)$’s unveiling of the long-awaited 'iPhone Duo' foldable has ignited high-stakes retail demand, but beneath the excitement lie lingering supply chain hurdles and a 14.52% short volume spike that highlights the deep debate over whether the tech giant's valuation is already running on borrowed time.

Trading in borrowed Apple shares that were sold short rose to 9.53 million shares Wednesday, from 6.23 million a day earlier. That short volume represented about 14.52% of the shares that changed hands that day, when the stock slipped 0.3% even as the iPhone Duo launch attracted positive analyst feedback.

Apple officially entered the foldable hardware market yesterday, taking the wraps off the iPhone Duo ahead of the holiday shopping season to test super-cycle demand against Android competitors like $Samsung Electronics (005930.KR)$, and $Alphabet-A (GOOGL.US)$. Positioned as a major product line shift, the newly announced device merges a pocketable footprint with an expansive tablet-sized canvas for high-net-worth consumers and enterprise professionals.

The device could increase Apple’s total iPhone revenue by 5%, and overall revenue of the company by 2.5% in fiscal year 2027, DeepWater Asset Management Managing Partner Gene Munster said in a post on X.

“Putting the Apple Event together, Apple is likely going to outperform over the next week,” he said in a post yesterday, after the product lunch.

Despite the excitement, Apple saw a net outflow of $102.9 million yesterday, with total outflows reaching $3.34 billion against $3.23 billion in inflows. Large and extra-large institutional block orders showed balanced-to-negative capital movement yesterday, signaling profit-taking or cautious repositioning by smart money.

That trend could be turning, with inflows of $320.46 million outpacing outflows of $224.27 million in the first nine minutes of trading Thursday. Block buy orders outstripped sell orders in all sizes, signaling both institutional and retail investors could be jumping in.

The launch comes at a time when the Apple is facing a supply crunch for memory that has fueled price increases. Investors are likely monitoring initial supply chain yields and consumer demand closely to see if the foldable form factor can meaningfully drive average selling prices and reignite hardware replacement cycles.

Apple now trades at a trailing price-to-earnings ratio of 36.16, pricier than the 26.13 for the $S&P 500 Index (.SPX.US)$. The iPhone maker's PE ratio now sits in the 88th percentile historically. The price-to-earnings ratio measures a company's share price relative to its per-share earnings, and a high ratio indicates investors are paying a steep price for each dollar of profit.

Data tracked by moomoo reveals an 85.76% profit ratio, meaning the vast majority of shareholders currently hold paper gains. This metric represents the percentage of shares bought below the current market price, and a high ratio often signals impending profit-taking risks.

The immediate support level rests at $292.80, while resistance is pegged at $330 according to data tracked by moomoo. Support levels indicate a price floor where buying interest tends to overcome selling pressure, whereas resistance represents a ceiling where selling volume typically halts upward momentum.

For retail investors, the primary risk involves rich valuation multiples leaving little room for execution missteps. A contrarian view suggests that heavy short positioning could fuel further upward momentum if upbeat consumer demand absorbs current institutional outflows.

Share your thoughts on Apple in the comments section. Do you expect the enthusiasm over iPhone Duo to justify Apple's hefty valuation and sustain the stock's 17% rally this year? Let your voice be heard by voting below. For those reading this column for the first time, you can also see more of these columns and my Options Chatter columns by following me here, where you can also find my other columns and interesting stories on some of the biggest stocks.

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