Leonard Brecken’s Big Short

Leonard Brecken predicted that Netflix (NFLX) is going to fall 70% within 12 months. He was on CNBC's Fast Money and told viewers that Netflix is playing accounting games and that content costs are skyrocketing. He also said Netflix has $1.4 billion in off-balance sheet content obligations (including the deals that are in the pipeline) and Netflix won't be able to make its money back. He claimed Netflix needs 80% penetration of the U.S. broadband market- which is next to impossible.

Netflix, Inc. (NASDAQ:NFLX)

Leonard Brecken is the founder of small NJ based hedge fund Brecken Capital. Brecken was on CNBC last month, right after Whitney Tilson announced that he covered his Netflix shorts. Not all hedge fund managers are bearish about Netflix. John Griffin's Blue Ridge Capital bought Netflix during the last quarter of 2010. Below is the video of Brecken's earlier Netflix comments on CNBC:

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