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. 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. 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