If you've been following the stock market, you now know what short selling is and perhaps the mechanics of short selling. If not, short selling refers to selling a stock without owning it. Although this practice has been recognized as a legitimate strategy, short sellers having been put on notice this past week.
Andrew Left is the founder of Citron Research and is one of Wall Street’s most prominent short-sellers. Andrew Left likes publicity and/or just knows how to benefit from it. Andrew Left is the famous short seller who has made a several headlines over the last 12 months.
Andrew Left made headlines around this time last year, whe he said Peloton was heading to $5 by the end of 2020 unless Peloton invents a piece of equipment that works out for you. Andrew's thesis was Peloton’s enterprise valuation didn't make sense compared to Planet Fitness and Fitbit. Peloton trades at $146 now.
However, after taking a major “L” on GameStop (he covered all his shorts at $90 for a 100% loss), Andrew Left said that after 20 years, his company Citron Research will finally exit the profitable business of writing reports on businesses whose value might fall in the near future.
Video Source: https://www.youtube.com/channel/UCIALMKvObZNtJ6AmdCLP7Lg/videos
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