Whitney Tilson Goes Long Netflix

Oct 25, 2011
J. Webster
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Whitney Tilson, the man wisely went short Netflix and then very unwisely took off his short trade is now going long the stock:

“It’s been frustrating to see our original investment thesis validated, yet not profit from it. It certainly highlights the importance of getting the timing right and maintaining your conviction even when the market moves against you. The core of our short thesis was always Netflix’s high valuation. In light of the stock’s collapse, we now think it’s cheap and today established a small long position. We hope it gets cheaper so we can add to it.”

To me, you’d think Tilson would move on from this stock and say he missed it. You’d think there were some other stocks out there he could choose. I’m guessing he’s going to be able to add to his now long Netflix position at a much lower price, much lower. Perhaps even in the $50 range. What’s going to happen next, is Reed Hasting now going to write a letter saying that Tilson shouldn’t get long Netflix stock?

Full story over at Forbes.

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