Palo Alto Networks (PANW) has only had 1 positive day in the entire month of December.

Submitted by MarkusEF t3_zwpiwv in wallstreetbets

That day was December 12, when it rose from $159 to $162. Otherwise, it’s been on a straight line down, from $178.40 on December 1 to $139.40 today. They “beat” earnings in November and haven’t had much news lately, so this is surprising.

Similarly, Rivian (RIVN) has only had 2 positive days this month. $27.89 12/6 -> $27.94 12/7 -> $28.58 12/8. Every other day has been negative. It went from $32 to $17.80 month to date.

I understand the EV bubble is popping and there are fundamentals behind Rivian, Tesla, Lucid, etc.’s sell-offs, but even with tax-loss selling, it’s still highly unusual for stocks to get beaten down this hard. Market makers will typically try to find some excuses to short-squeeze extremely beaten-down names, but nothing this month. I tried some contrarian buying & got burned.

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VisualMod t1_j1w0n2y wrote

>It's not surprising at all. The EV bubble is definitely popping and these stocks are getting hammered as a result. There's no reason to think that the market makers will try to find some excuses to short-squeeze them, because there are very real fundamental problems with these companies right now. If you're looking for a contrarian play, I would stay away from these names for now.

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NyackAP t1_j1whb4x wrote

I just took a look at PANW... They have been losing money forever though their revenue has been growing. I'm surprised that they have lasted this long without getting hammered.

One of my previous employers had been bought out. The management team had been replaced by a team that had the notion of increasing revenue at any cost. That gets really expensive after a while. It would appear that PANW might have a little of that going on. Their revenue is increasing year over year while their annual loss is steady. Meanwhile their executive team has a very handsome salary package for a company that has never made a profit.

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vacityrocker t1_j1w2xdv wrote

At this point the sell of is compounded by the retail side letting go if the bags they carry- this indicates to the big fish that there are a few left to crush the outs they sell are becoming closer to assignment and the puts they bought will help scoop the shares up at prices reduced by profit of puts bot and premiums from puts sold. Indicating that it's getting closer to a buy

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VisualMod t1_j1w0mgz wrote

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RangerGripp t1_j1w2pbr wrote

I believe the risk/reward on PANW is very good at these levels.

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marsbup2 t1_j1wknkr wrote

What to do with this data?

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jr1tn t1_j1w289k wrote

That's not a how a short squeeze works. You need a stock that has an unusually high short ratio.

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