Citron's Andrew Left Thinks Netflix Got 'Ahead Of Itself,' Sees Stock Falling Below $300

Notable short seller Andrew Left of Citron Research isn't a fan of Netflix, Inc. (NASDAQ: NFLX) at the stock's current levels.

What Happened

Netflix's stock has seen a "historic run" but multiple factors don't support its valuation north of $300 per share, Left told CNBC's Scott Wapner. The stock "did get ahead of itself" and should see a "quick pass down" from Monday's price of around $330 after adding $17 billion in value within the last week.

Meanwhile, Netflix investors need to ask themselves a serious question that calls into question the stock's massive run, Left said. Specifically, Apple Inc. (NASDAQ: AAPL) can "do what Netflix does, but can Netflix do what Apple does?"

Stranger Things happening at $NFLX. Wit mkt cap up $17 BIL in a week and short interest. at 10 year low. Citron thinks the stock can be shorted back to $300. Content spend unsustainable long term. Great article today's FT https://t.co/jTM8lGoWdp Congrats to bulls, historic run

— Citron Research (@CitronResearch) March 12, 2018

Why It's Important

"The moat is just not there to justify the huge price increases we have seen in the past few weeks," Left said. "[That] doesn't mean it isn't a great company, doesn't mean [Netflix CEO} Reed Hastings hasn't done one of the greatest jobs in all of tech."

Left likes the fact that short interest is at a 10-year low.

"When all the shorts throw the towel in...and the stock's peaking and you see the chart on the stock from the past week, that tells me okay, I like this as an entry point."

Even if Left's short call is correct and the stock dips all the way to $270 per share, long-term investors would still be sitting on a hefty profit.

What's Next

At the end of the day, Left doesn't think Netflix is a bad company, but investors should take their profit. The stock fell about 3.4 percent following Citron's initial tweet and was trading around $320.17 at time of publication.

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Image credit: Matthew Keys, Flickr