A notorious short-seller pulls back on its bet against Netflix, saying international traction could boost the stock 20%

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Netflix

A notorious short-seller is paring back a bet against Netflix, one of the most-shorted stocks on the US stock market.

Citron Research, which is run by Andrew Left, announced in a tweet on Thursday that its changing its bearish position on Netflix based on new data around international subscribers.

“After years of making “Elite” short calls on $NFLX Citron is going “Dark,” the firm wrote in a tweet on Thursday. “New data shows Intl traction might be “The Mechanism” to take the stock back to $350. Long $NFLX into next Q is the real “Money Heist.”

The $350 figure represents almost 20% upside from where Netflix shares trades on Friday.

The call also comes about three weeks after Netflix short sellers took a major beating following strong third-quarter results from the streaming giant.

Traders betting against the stock saw about $287 million in mark-to-market losses on October 17, the day after Netflix reported earnings.

While some of those positions might have been closed and losses recovered since then, the surge was still a shock for short sellers.

In early January, the streaming company’s shares were trading above $330 a piece, and Citron said investor’s were “as blind as Bird Box,” referring to a Netflix movie starring Sandra Bullock. The firm predicted Netflix shares would fall back to the $300 level.

Left is perhaps best known for the series of prescient short-seller reports he wrote on Valeant Pharmaceuticals, which ended up coming under fire for the fraud he helped highlight. His tweets have been known to move a stock instantly.

Netflix’s stock is up about 9.5% year-to-date.

NFLX stock

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Markets Insider