Short-seller Andrew Left is betting against GameStop again, undaunted by his 100% loss last time
Andrew Left, founder of Citron Research, is selling GameStop again, arguing that the stock is “overvalued” after its recent meteoric rise. The veteran short-seller got burned on his first bet against the stock traders' favorite company in 2021, and eventually closed his short position at a 100% loss and stopped publishing short reports after saying “Angry crowd“He was harassed by bigoted GameStop shareholders.
But Lyft, which made its name with big bets against pharmaceutical giant Valeant and now-defunct Chinese real estate giant Evergrande, told the newspaper Wall Street Journal He made a profit when he bet on GameStop again last month.
The video game retailer saw its shares rise from just over $10 at the beginning of May to an intraday peak of $64.83 by May 14 after Keith Gill — the trader and de facto meme stock leader, who goes by the nickname Roaring Kitty — noted To the company. in social media posts, prompting retail investors to pile in. After that initial rally, GameStop stock eventually fell to a low of $18.93 on May 23, and Left says he was able to close out his short position for a profit during this period, he says.
On Monday, the founder of Citron Research doubled his bearish bet against GameStop after Gill posted a screenshot on Reddit that implied he owned more than $100 million worth of the retailer's stock. “When I saw him, I shortened it.” Yasar Tell Bloomberg From a Reddit post.
He said in his speech that the rise in GameStop shares is simply “irrational” and shows that the United States has become a “nation of gamblers.” Wall Street Journal interview.
GameStop stock is up more than 33% from its opening price on Monday, but is down more than 23% from its intraday high. This means that the potential profitability of the left's current short position, at least for the time being, depends on the price at which he is able to secure the stock for the bet.
Either way, the veteran short-seller said he learned not to make big bets against “believe” stocks when he got busy shorting GameStop in 2021, and his latest short trade puts a small portion of his portfolio at risk. “It's a cult stock. Don't do it on cult stocks,” he told magazine. “Fool me once, shame on you. Fool me twice, shame on me.”
