Mark Zuckerberg’s hearing has Facebook traders bracing for the worst as hedges surge

Reuters / Keith Bedford

• Mark Zuckerberg will face a Congressional hearing on Tuesday to address Facebook’s involvement with a political-research company that accessed 50 million user profiles illegitimately.
• Based on how stock traders are positioned, they’re expecting Facebook’s recent share price woes to continue.
• Follow Facebook’s stock here.

Facebook‘s stock has taken a serious beating in the weeks leading up to chief executive officer Mark Zuckerberg’s appearance in front of Congress on Tuesday. And based on how traders are positioning ahead of the testimony, they think the selling can get even worse.

Short interest — or a measure of bets that a stock will decline — has spiked to 0.43% of shares outstanding for loan, the highest since September 2015, according to data compiled by IHS Markit. The gauge has more than doubled from its levels in mid-March.

See the rest of the story at Business Insider

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