KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
A Surge in Bearish Bets Against Meta
Meta Platforms, the parent company of Facebook and Instagram, has become the top target for short sellers in 2025. Despite reporting strong second-quarter results in July, short interest in the stock has ballooned.
According to data from S3 Partners, more than $11 billion is now bet against Meta. That represents a 75% increase in short interest this year, fueled by both new entrants and the company’s 30% year-to-date stock gain.
The $11 billion figure makes Meta the single largest short target in the market, exceeding the combined short interest in Microsoft and Palantir.
Meta vs. Microsoft and Palantir
The contrast is striking. Short interest gains in 2025 stand at:
Meta: $11.0 billion
Palantir: $2.8 billion
Microsoft: $2.2 billion
Together, Microsoft and Palantir fall far short of Meta’s total, underscoring how concentrated bearish bets have become against Zuckerberg’s company. Notably, Palantir shares are up 110% year-to-date, while Microsoft has also logged positive gains.
Why Investors Are Targeting Meta
The rising short positions point to skepticism about Meta’s long-term strategy. Analysts and traders cite several possible drivers:
Heavy Spending: Meta continues to pour resources into artificial intelligence hiring and its costly metaverse ambitions. Investors fear this could erode margins.
Macroeconomic Pressures: Tariffs and slowing global growth may weigh on revenue.
Advertising Headwinds: Any weakness in digital ad rates could hurt the stock after its strong run-up this year.
For now, short sellers may be waiting for a negative catalyst. Without one, the next test comes in late October when Meta reports third-quarter earnings.
Meta’s Strong Track Record
Despite the bearish bets, Meta has consistently outperformed Wall Street expectations. The company has:
Beaten earnings estimates for 10 consecutive quarters
Surpassed revenue estimates in 13 straight quarters
This consistency has underpinned strong share performance, with Meta trading near record highs. As of Tuesday, shares are down 2% at $752.27, but remain up 25.6% year-to-date within a 52-week range of $479.80 to $796.25.
Key Takeaways
Meta is now the most shorted stock in 2025, with $11B in bearish bets.
Short interest in Meta exceeds Microsoft and Palantir combined.
Skepticism centers on Meta’s AI hiring spree, metaverse spending, and ad market risks.
Despite this, Meta has a decade-long record of beating analyst expectations.
The next major test for shorts and bulls alike will be the company’s Q3 earnings in late October.
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