Zip Co's short position has remained stubbornly high, tracking well above its financial services sector average. The sustained interest suggests a persistent bearish view, even as the stock experiences sharp price swings driven by both positive operational news and recent legal setbacks.
After a blistering April rally saw Zip shares gain 75% in a month 14 and enter "overbought territory" 11, the company upgraded its FY26 EBTDA guidance to A$260 million following record quarterly profit 15, R2. This positive sentiment, with some noting a "strong comeback" 10, was quickly tempered. In mid-May, Zip shares sank after losing a High Court trademark case, forcing a rebrand 2, 4. This legal defeat prompted questions about whether to "buy the dip or cut losses" 2, erasing much of the prior momentum.
The current short interest in ZIP stands at 11.19%, a notable increase from the 90-day average of 8.41%. While the 90-day slope shows a clear upward trend in shorting activity, a closer look at the 7-day slope suggests a marginal recent reduction from the 90-day peak of 12.76%. This slight easing in short positions comes as the share price has declined 13.0% over the last month and 7.6% over three months, indicating short sellers have, on balance, been rewarded. The ASIC T+4 delay means the reported figure reflects activity from last Friday.
Zip's short interest remains elevated at 11.19%, significantly higher than the peer average. The pattern suggests short sellers are playing the longer game, watching for structural shifts rather than day-to-day news.