Short sellers bet on return of dot.com bubble
SHORT sellers are targeting global technology stocks, as traders bet on a return to dot.com boom and bust.
The tech sector recorded the highest proportion of new stock loans out of all other sectors last week, according to research provider DataExplorers.
US technology software and services had short interest at 6.5 per cent of total shares at the end of last week. The rise is well above the average US broad market Russell 3,000 index where short interest hit 4.6 per cent.
AOL, the US internet provider, has been subject to rising short interest over recent months.
Shares in the company have fallen in recent months, and short sellers increased their positions in March to reach a fresh high of 16.7 per cent of total shares.
The developments come on the back of several high-profile technology floats in the US, including the listing of networking website LinkedIn, and in anticipation of the float of Facebook.