David Einhorn, the closely-followed investor and head of the struggling hedge fund Greenlight Capital, is again publicly disparaging Netflix (NASDAQ: NFLX), a stock he has included in his basket of so-called “bubble shorts.”
Addressing the streaming video giant on a conference call with his investors, Einhorn said that Netflix has not shown an ability to turn subscribers into cash, it has just shown an ability to turn cash into subscribers.
Einhorn’s hedge fund Greenlight Capital finished down 13.6% at the end of the first quarter, according to published reports, pulled back by his bearish bets on Netflix and Amazon.com (NASDAQ:AMZN).
In Einhorn’s so-called bubble basket of overvalued technology stocks are Amazon, the electric-car maker Tesla and Netflix.
In the last year, shares in the heavily-loss making Netflix have almost doubled and are currently trading down 1.1% to US$308.99.
Read: Netflix to raise another US$1.5bn in debt as it dials up content spending
Just last month, Netflix Inc revealed it is tapping the debt market once again as it looks for more cash to fuel the rapid expansion of its user base.
It plans to raise another US$1.5bn in fresh debt, despite having only raised US$1.6bn last October.
Netflix is spending heavily on its content in order to drive subscriber growth around the world and fend off competition from the likes of Amazon.com Inc and Hulu.