ImmunityBio Shares Face Mounting Pressure from Short Sellers

The new year has opened with a stark warning signal for investors in ImmunityBio. Despite garnering significant recognition for its cancer research, the biotechnology firm's stock is under intense scrutiny as market sentiment turns decidedly bearish. Data reveals a sharp increase in speculative bets against the company's share price throughout December.

A dramatic rise in short selling activity stands as the most prominent indicator of current market skepticism. In December alone, the short interest in ImmunityBio surged by 23.1%. Market participants have now sold short approximately 109 million shares. This substantial figure represents roughly 36.3% of the company's freely tradable stock, or float, indicating a large segment of the market is wagering on continued price declines.

The elevated short position has also pushed a key risk metric higher. The "days to cover" ratio—which estimates how long it would take to buy back all borrowed shares—now sits at 8.3 days. Analysts note that a ratio this high can set the stage for a potential short squeeze. Such an event could be triggered if unexpectedly positive news forces short sellers to rapidly cover their positions, potentially driving the share price upward.

Scientific Acclaim Contrasts with Financial Anxiety

This financial tension exists in sharp contrast to recent professional accolades received by the company's leadership. In late December, Dr. Patrick Soon-Shiong, the Founder and Executive Chairman of ImmunityBio, was named one of the "100 most influential people in oncology for 2025." This honor highlights the respected scientific foundation of the company's work, particularly within the field of immunotherapy development.

Should investors sell immediately? Or is it worth buying ImmunityBio?

However, the market has so far been unwilling to translate this long-term reputational gain into share price support. Investor focus remains fixed on immediate operational challenges and the stock's weak performance trajectory.

Technical Outlook Points to Continued Weakness

From a technical analysis perspective, the equity remains in a precarious position. The share price is trading well below its key moving averages, a chart-based confirmation of the persistent downward trend. Traders are closely monitoring the 52-week low of $1.67. A sustained breach below this critical support level is viewed as a technical signal that could open the door to further losses.

Conversely, the exceptionally high level of short interest provides a counterbalance to the bearish technical picture. Any substantive positive development—whether from the company's clinical pipeline or its financial reports—could ignite a powerful rally as short sellers scramble to exit. For now, however, sellers maintain clear control of the trend. The upcoming quarterly financial results are widely anticipated as a crucial test of the company's fundamental stability.