Hedge Funds Short Teleperformance at 17.2% as AI Threat Hits Call Centre Stocks
Updated
Updated · Financial Times · Jun 5
Hedge Funds Short Teleperformance at 17.2% as AI Threat Hits Call Centre Stocks
2 articles · Updated · Financial Times · Jun 5
Summary
Teleperformance has become one of Europe’s most shorted stocks, with short interest climbing from about 4% at the start of 2026 to 17.2% this month as funds target call-centre outsourcers.
AI is driving the trade: investors increasingly expect automated voice systems and digital agents to cut demand for outsourced customer-service labor, pressuring both equity valuations and credit.
Teleperformance’s shares are down about one-quarter over the past year, while roughly 11% of its €500 million 2030 bond and 7.8% of its €750 million 2028 bond are also being shorted.
The pressure extends across the sector: Concentrix and TTEC shares have each fallen about one-third this year, and Foundever’s 2028 bonds trade near 50 cents on the dollar after an S&P downgrade to CCC.
Companies including Teleperformance, TTEC, Concentrix and Indian peers say AI can strengthen their offerings, but investors still see a high burden of proof that the business model can adapt.
As AI splits the outsourcing market, which companies are winning the race to provide high-value, AI-augmented services?
With most AI pilots failing to show ROI, how can outsourcing firms turn their huge AI spending into actual profit?
Teleperformance and the Call Center Industry: Navigating AI Disruption, Investor Skepticism, and a 73% Valuation Discount
Overview
The call center industry is undergoing major changes as the rise of Artificial Intelligence (AI) increases investor skepticism and drives hedge funds to bet against sector stocks. This skepticism has led to market apprehension and significant volatility, with investors closely watching short interest data for signs of sentiment shifts. Teleperformance, a key player, has faced a challenging period marked by a seven-year stock low, despite efforts to reassure investors. The growing threat of AI is reshaping market dynamics, forcing companies to adapt quickly while investors remain cautious about the industry's future profitability and stability.