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Wall Street Short Sellers Piled Into Amazon and Microsoft at Historic Rates Before Earnings. Now They're Rallying.

The article says Amazon and Microsoft are driving a post-earnings short squeeze in mega-cap tech after both delivered decisive beats, forcing short sellers to cover and fueling sharp rallies. Microsoft is up 27% over the past month and Amazon is up 14%, with the move also helping the Nasdaq-100 via QQQ. The piece argues the rally is not purely mechanical: stronger cloud growth and rising confidence in AI infrastructure spending are reinforcing the bullish narrative. In contrast, Meta Platforms missed earnings expectations, broke a six-quarter beat streak, and has not participated in the squeeze, highlighting that the rally is selective. The article warns that short-covering can fade once the forced buying ends, and notes near-term consolidation risk for both Microsoft and Amazon despite supportive AI capex expectations.

Category

Amazon

Sentiment

Mixed

Event

Market commentary

Reading time

1 min