- Andrew Left, the notorious short-seller who runs Citron Research, is pulling back on his bet against Netflix.
- Citron tweeted on Thursday that new data suggest international traction will boost the stock by 20% to $350 per share.
- Traders betting against Netflix lost $287 million in a single day in mid-October after shares surged 11% on strong earnings.
- Watch Netflix trade live on Markets Insider.
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.