Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Is Jim Chanos Short Netflix?

Shortseller Jim Chanos has a stellar reputation. He picks shorts from the industries that are going through innovation and creating a lot of technological obsolescence. Several years ago he handsomely profited from the decline of Kodak (EK) and Blockbuster (BLOAQ.PK). Three years ago, in an interview he gave to Bloomberg’s Katherine Burton, he said the following about Netflix (NFLX):

Jim Chanos puppeteer

Look at Netflix. Consider the concept of having little old ladies in warehouses stuffing envelopes with DVDs. That might be a business for the next two or three years, but then it won’t work. Why anyone would pay twenty-seven times earnings for that is beyond me.”It’s been three years since that interview. We wonder whether Jim Chanos is now short Netflix. Recently Whitney Tilson publicly questioned Netflix’s valuation and announced that he has been short Netflix. Earlier this week, the New York Times reported  that Time Warner (TWX) considered Netflix a fading star, supporting Whitney Tilson’s pessimistic views..

This Friday Netflix will replace the New York Times (NYT) on the S&P 500 index. New York Times shares will take a hit and Netflix shares will get a bump. Short sellers  don’t know how long this torture will go on, or whether it will even end one day. Netflix is a survivor. While they were being belittled in the media world, the company managed to beat giants like Walmart (WMT). That feat isn’t something to ignore.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.