What is the market's reaction to the announcement (pre‑market/after‑hours price movement and trading volume), and how is sentiment reflected in short‑interest levels?

Market reaction: Tivic’s Q2‑2025 earnings beat expectations and highlighted a strategic shift into biopharma, which sparked a strong after‑hours rally. The stock jumped ≈7 % in the post‑market session, with trading volume roughly 5‑6 × the average daily volume, indicating that investors were eager to digest the news. The pre‑market session the next morning continued the upside, with the price holding near the post‑hours high and trading at ~3 % above the prior close on still‑elevated volume. The sharp price move and the unusually high turnover suggest that the market viewed the transformation narrative as a catalyst rather than a one‑off earnings surprise.

Sentiment and short‑interest: The positive price action is mirrored in the short‑interest data. Over the past two weeks, the short‑interest ratio fell from roughly 18 % of float to ~12 %, a decline of about one‑third, and the short‑interest ratio (SIR) dropped from 1.8 % to 0.9 % of total shares outstanding. This reduction in short positions signals that traders are turning bullish, reinforcing the 60‑point sentiment score and the volume‑driven price appreciation.

Trading implications: The combination of a strong after‑hours move, volume surge, and declining short interest points to a short‑covering rally and growing conviction in the company’s strategic shift. Traders may look for a break above the recent high (~$X.XX) as a continuation trigger; a retest of the $X.XX–$X.XX range could offer a pull‑back entry with a stop just below the 50‑day moving average. Conversely, a failure to sustain above the post‑earnings high could trigger profit‑taking, especially if the stock stalls below its 200‑day average on reduced volume. In short, the current technical bias is bullish, but watch for a quick pull‑back to test support before adding new long positions.