Whitney Tilson is Crying Over Netflix Short

Sep 20, 2011
J. Webster
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Back on February 11, 2011 Whitney Tilson famously covered his short in Netflix. Crying uncle he gave in to the hype.

Today, Netflix is down $100 from the point where he covered his short, the stock almost cut in half since then. When Tilson covered his Netflix trade it was $230 a share, right now it’s sitting at $130 a share. Tears stream down Tilson’s face as he sits at his trading desk, sobbing like a three year old how has lost his favorite toy. Asking himself why, why…

Netflix has been a special stock the past few years, going from around $7 a share in 2000 to over $300 a share in the last ten years. Quite a surge, yet it’s always been a stock that people wanted to short if they had the guts.

Reed Hastings, the CEO of Netflix, also famously told Tilson to cover his short.

The hedge funds and stock traders I’ve read about who make piles of money are always those who buck the trend, say screw conventional wisdom, and stay strong in their trade, enduring the pain for sometimes years before their ship comes and they make more money than Scrooge McDuck.

It looks like Tilson got out much too early. Tears are dripping down his face as he scans the price of Netflix today. Why, oh why did I listen to Reed Hastings…

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