S3 data shows short interest across the Nasdaq-100 rose through year-end 2025, with the index average reaching 3% of float in late November. Persistent macro uncertainty and crowded long positioning encouraged incremental hedging rather than wholesale de-risking.

Shorts in Meta Platforms (META) climbed 40% from the start of Q4 through January 29, while Charter Communications (CHTR) saw a 20% increase over the same period. Both stocks delivered outsized post-earnings gains.

Several Nasdaq-100 stocks enter earnings with rising and above-average short interest, including Electronic Arts (EA) and Thomson Reuters (TRI), increasing the risk of sharp post-earnings moves. Strategy (MSTR) saw a large build in shorts in Q4 and remains an outlier at three times the index average percent of float short, despite marginal year to date covering.

Rising shorts fueled post-earnings gains in CHTR & META. Next up: TRI, EA & MSTR.

META and CHTR both beat expectations, and elevated short interest magnified the upside. META showed improving profitability and strong cash generation despite higher investment, while CHTR delivered stable results that eased investor concerns. In contrast, Tesla and Apple, where shorts were down or flat, did not see comparable rallies. Microsoft beat on revenue and EPS but still fell sharply as investors focused on decelerating Azure growth. Shorts in MSFT had ticked up heading into earnings but remained well below their Q4 peak.

Stocks with rising short interest can move sharply if results challenge the bearish narrative. Talk to S3 to identify the next setup.

Short interest in Charter rose steadily as the stock sold off into earnings, reflecting growing macro and competitive pessimism. When results proved more stable than feared, elevated short positioning amplified the rebound.

Short interest in Meta increased meaningfully in October and November and held steady since then, setting up a crowded bearish trade into earnings. Strong results and resilient cash generation forced an accelerated post-earnings rally.

The table shows the Nasdaq-100 stocks with the largest three-month increases in short interest as a percent of shares available to trade, building on the first chart that shows short interest rising across the index. For example, shorts added to positions by 2.6% of free floating shares over the last three months. Some of these stocks have earnings coming up, including Electronic Arts (EA) on February 3 and Thomson Reuters (TRI) and Strategy (MSTR) on February 5. The increase in short interest in Electronic Arts is notable given near-certain expectation that the go-private transaction will close, as reflected by the stock trading steadily near the deal price. Broader software weakness has attracted fresh shorts across the sector, raising the stakes for upcoming prints.

For stocks with rising short interest, and elevated levels relative to the Nasdaq-100 average, upcoming earnings could drive sharp moves if results challenge bearish expectations. In some cases, short interest has risen sharply from a low base, as with Ferrovial (FER), while others combine large Q4 increases with already high absolute short levels, most notably Strategy (MSTR), where short interest remains roughly three times the index average despite some year-to-date covering.

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