Omnicom most shorted S&P 500 communications stocks in July; Alphabet least shorted

Bets against communication services stocks were flat in July compared to the end of June, with Omnicom Group (OMC [https://seekingalpha.com/symbol/OMC]) being the most shorted stock in the sector and Google-parent Alphabet (GOOG [https://seekingalpha.com/symbol/GOOG]) taking the spot for the least shorted.

Average short interest across S&P 500 communications services stocks was 2.11% of shares float in end-July, in-line with that of June.

The S&P 500’s communications services sector (NYSEARCA:XLC [https://seekingalpha.com/symbol/XLC]) is up nearly 15% so far this year, compared to the about 10% rise in the broader market.

STOCKS WITH THE LARGEST AND LEAST SHORT POSITIONS

_Ranked by short interest as a percentage of shares float_

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Meta Platforms Class A (META [https://seekingalpha.com/symbol/META]), Alphabet Class A (GOOGL [https://seekingalpha.com/symbol/GOOGL]) and Netflix (NFLX [https://seekingalpha.com/symbol/NFLX]), the three largest contributors to the index, had short interest of 1.16%, 0.99%, and 1.51%, respectively.

Omnicom Group (OMC [https://seekingalpha.com/symbol/OMC]) had 32.15 million shares sold short as of July 31, or 16.48% of shares float.

Paramount Global (PARA [https://seekingalpha.com/symbol/PARA#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]) was the second most shorted stock at 13.40% of shares float, followed by Charter Communications (CHTR [https://seekingalpha.com/symbol/CHTR]) and Live Nation Entertainment (LYV [https://seekingalpha.com/symbol/LYV]), with short interest of 13.36% and 12.31%, respectively.

Alphabet (GOOG [https://seekingalpha.com/symbol/GOOG]) was the least shorted stock, having 36.99 million shares sold.

INDUSTRY ANALYSIS

_Average short interest as a percentage of floating shares_

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Media stocks was the most shorted industry within the sector, with 4.22% short interest as of end-July, up from 3.75% during end-June.

Entertainment stocks took the second spot with 3.44% short interest as of July, compared to 4.03% at June-end.

Interactive Media and Services, which has stocks like Alphabet and Meta Platforms, was the least shorted industry in the sector, with 0.98% short interest as of July.

MORE ON COMMUNICATION SERVICES SELECT SECTOR SPDR FUND

* XLC: The Communication Services ETF That's Heavily Weighted Toward Big Tech [https://seekingalpha.com/article/4802732-xlc-communication-services-etf-thats-heavily-weighted-toward-big-tech]
* XLC: Even The Dogs Are Rallying [https://seekingalpha.com/article/4799310-xlc-even-the-dogs-are-rallying]
* Overbought or Oversold? A sector-by-sector look at today’s market [https://seekingalpha.com/news/4484664-overbought-or-oversold-a-sector-by-sector-look-at-todays-market]
* The best sectors for tactical investors - BofA quant [https://seekingalpha.com/news/4483106-the-best-sectors-for-tactical-investors-bofa-quant]
* Seeking Alpha’s Quant Rating on Communication Services Select Sector SPDR Fund [https://seekingalpha.com/symbol/XLC/ratings/quant-ratings]