Pessimistic traders bet big against Apple

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AAPL is the world's third most shorted stock.
Photo: Ste Smith/Cult of Mac

The stock market’s a funny place, eh? Just a couple of months after becoming the first company in history to break the $800 billion valuation mark, Apple now finds itself in the unusual position of having investors betting against it.

Short interest on Apple (meaning that investors are staking money on AAPL share prices falling) climbed by $1.3 billion over the past month. According to data compiled by S3 Partners, Apple is now the third most shorted company in the world — after Tesla and Alibaba.

Apple Stock Hits All-Time High As Investors Rush To Get In Early Before iPhone 5

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Watch it go up and up and up.
Watch it go up and up and up.

Apple stock hit an all-time high of $636.64 per share on Thursday, and today that price continues to rise. The last time Apple jumped above $630 a share was back in April, right before its share price began a six-week decline that knocked $115 off the price — and $100 billion off Apple’s market cap — when it ended on May 18.

It’s unlikely we’ll see a repeat of that now, however. According to one analyst, investors are so keen to plough their money into Apple before the iPhone 5 sends share prices rocketing that there’s no sign of those prices dropping anytime soon.