Citron's Andrew Left closes Wayfair short bet after long wait

This post was originally published on this site

By Saqib Iqbal Ahmed

NEW YORK (Reuters) – This week’s sharp stock sell-off helped activist short-seller Andrew Left profitably close a long-held bet against online retailer Wayfair (N:) on Friday.

“I have been short Wayfair for four years and I actually covered it this morning,” Left said in an interview. “It felt like I was having a baby,” he said.

Short-sellers aim to profit by selling borrowed shares, hoping to buy them back later at a lower price.

Wayfair shares closed down 10.2% on Friday after the company posted a wider-than-expected quarterly loss. The shares have dropped 21% this week amid a broad market sell-off.

The S&P 500 fell 0.8% on Friday, its seventh straight day of declines. The benchmark index suffered its biggest weekly drop since the 2008 global financial crisis on growing fears the fast-spreading coronavirus could lead to a recession, although stocks cut losses at the end of the day’s session.

Left, editor of the online investment newsletter Citron Research, said the sell-off on Wall Street prompted him to buy shares of Twitter Inc (N:).

“If everything in this country becomes worse, Twitter will become the go-to place for information,” he said.

Twitter shares, down about 13% for the week, closed up 0.6% on Friday.

Left’s largest long bet is Amazon (O:), he said.

“Amazon is the ultimate stay at home stock. You will win all different ways. You have a company that is trading at the same price it was pre-earnings and they put up a monster number three weeks ago,” he said.

Amazon shares fell 10% this week.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Add Comment