Online greetings card and gift retailer Moonpig’s shares may have already halved this year on the back of a slowdown in consumer spending, but some hedge funds believe the stock has farther to fall with short bets against the company now at record levels, according to a report by ThisIsMoney.
Online greetings card and gift retailer Moonpig’s shares may have already halved this year on the back of a slowdown in consumer spending, but some hedge funds believe the stock has farther to fall with short bets against the company now at record levels, according to a report by ThisIsMoney.
The report reveals that almost 4 per cent of the company’s stock is now on loan to short sellers including GLG Partners, BennBridge and JPMorgan Asset Management, suggesting that Moonpig may not be best placed to enjoy the happiest of Christmases this year.
The business was valued at £1.2 billion when it floated in London in February last year, following a boom in online spending during the pandemic. But with online sales returning to more normal levels since the end of lock-down, and the cost of living crisis prompting customers to cool on the company’s higher price and higher margin soft toys and other gift products, its valuation has dropped to £576 million.
