More & more shorts = higher & higher rallies. The only fundamental you need to know
Everything else is immaterial. More shorts = more the rally. NFLX at 600+ PE and $10 BILLION market cap. you may ask yourself, for what?
but markets asks: do we have anymore shorts to be squeezed: let's go higher then. The MMs on the street dont worry about PE or co. fundamentals and how good or bad the future is of the co. All they care is how many shorts they can squeeze out
I share Ibabic sentiments and this is a dangerous short to say the least. That said the number of available shorts through Fid has grown 4 fold since this stock went on a 40% tear recently. That would suggest they have squeezed out a good percentage (or at least i would think). In any event the events of the market will ultimately determine who is right here.....and when. GLTA.
This stock is an overgrown pig and "should" be trading a lot lower. That being said, I am in full agreement with your post. NFLX is to much of an obvious short. MMs are licking their chops waiting for more shorts to come in.
Maybe, but at some point, the squeeze is over and new stronger shorts take over.
Much like a little over a year ago when I was squeezed out near 133, just before it tanked to the 50s. Has nflx fundamentals changed since then? Of course not. If anything, competition has ramped up, from AMZN and Coinstar/Verizon. Upgrades are a joke! What's the motivation? New business on a secondary? Fear of looking stupid by being late to the party? It's just like stupid retail buying at the top. Gotta be contrarian to make money in this rigged market, and patient on entry, exit points.