Why We're Short These 2 Story Stocks

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Includes: NFLX, TSLA
by: Hedgeye
Summary

Our analysts have had short calls on Netflix and Tesla.

Both of these story stock, fundamental short calls will be negatively impacted by our Macro team's expectation for the U.S. economy to slow in the back half of 2019.

"You really want to be ready the next earnings season, because if Netflix misses, it’s not going to be down by a little bit," Hedgeye CEO Keith McCullough says.

Put aside your bias. Keep your eye on the data.

On a recent episode of The Macro Show, Hedgeye CEO Keith McCullough and Communications analyst Andrew Freedman discussed two of our favorite short ideas: Netflix (NFLX) and Tesla (TSLA), as well as why we recommend long Disney (DIS).

In particular, they discuss why these two short ideas inflame so many so-called "experts" on the Old Wall.

"Shareholders in stocks in the FAANG and Tesla are locked and loaded with people with fundamental beliefs that have nothing to do with real research or numbers," McCullough explains in the clip above.

"I don't give a damn if I'm long Disney or Netflix. I just want to be long the right one and not wrong. We have no bias. What you really want to be ready for is the next earnings season, because if Netflix misses, it's not going to be down by a little bit.

Watch the full video above for more.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.