The Netflix Graveyard is Littered With Tombstones of Short Sellers

chicagosean

The news from Netflix this week regarding their increased subscription costs has received tremendous backlash from users. Meanwhile, the stock continues to display tremendous strength, proving that fundamental and technical analysis matters – except when it doesn’t.

@williamsmith shared this chart of $NFLX on chart.ly today suggesting if a bearish drop happens it, there’s a lot of room between here and its longer term moving averages.

While this is true, there has been a ton of money lost on the short side in this name over the past couple of years and I’m not sure I want to be the hero here. Better to wait on a real catalyst.

A wide range of thoughts from the StockTwits Community:

MOFinancial: People have been talking about the $NFLX multiple for a year now & shorts have been annihilated.

tradeticket: $NFLX price increases: I Never used Netflix and as long as there’s this thing called Torrent….I likely won’t ever use Netflix.

Lightman: $NFLX Compared to costs of taking family to movie theater or adding the movie channels to cable, $NFLX still a pretty decent deal IMHO.

bgfalcon91: $NFLX Expecting big fade into the close. No rationale investor buys at these levels.

 

chicagosean

My name is Sean McLaughlin and I trade my own account from my home office on the Northside of Chicago, IL. I’ve worked at prop firms, started and ran a small hedge fund, was a member of the Chicago Board of Trade, and have learned – the hard way – to seek simpler ways of trading, investing, and living.


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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