Shorts bet big against tech: YHOO, MSFT, LVLT, INTC, DELL

Published: February 27, 2008, 11:40 pm

Tags: dell, intc, inthenews, lvlt, msft, shorting stocks, shortingstocks, tech stock, techstock, yhoo

Filed under: Microsoft (MSFT), Yahoo! (YHOO), Dell (DELL), Intel (INTC), Short stories, Level 3 Communications (LVLT)Short interest for stocks traded on the Nasdaq showed big bets that major tech stocks would drop. The figures are as of February 15 and compare with the numbers on January 31. Short interest in Microsoft (NASDAQ: MSFT) jumped 22.6 million to 112.3 million, almost certainly a bet that the company will buy Yahoo! (NASDAQ: YHOO), a purchase many holders oppose as a distraction. Oddly, Yahoo! short interest moved up 12.7 million to 55.2 million. This may be because some portion of Wall Street believes that Microsoft could drop its price or walk away from a deal completely. As internet ad revenue slows this becomes more likely. The hardest hit stock among short sellers was Level 3 (NASDAQ: LVLT). Its financial results for 2007 were poor and the company is loaded with debt. If the need for bandwidth does not spike up in 2008, Level 3's earnings may not recover. Shares sold

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