Billionaire investor and hedge fund manager David Einhorn revealed that he sold Greenlight Capital’s shares in lingerie maker Victoria’s Secret in Q2. Einhorn has reportedly made nearly 160% in just a year on that trade with the stock up 65% in 2026 alone. The question is, should investors follow suit and sell even as the company’s financial results look poised to keep improving? According to the Elliott Wave chart below, they at least ought to be thinking about it.
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The daily chart of Victoria’s Secret stock reveals that the surge from under $14 in April, 2025, can be seen as an almost complete five-wave impulse. We’ve marked the pattern (1)-(2)-(3)-(4)-(5), where two lower degrees of the trend are visible within wave (3). If this count is correct, wave (5) can soon be expected to reach a new record high near $110 per share. This leaves us with roughly another 20% of upside from the current price just below $90.
Once there, however, extrapolating the recent past into the future would be a dangerous game to play. Instead, it would make sense to expect a three-wave correction down to the support of wave (4) near $70. If fundamentals continue to hold, Victoria’s Secret stock would be a real bargain by then. That’s a big If, though, especially when it comes to the fickle market for women clothing and underwear.
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