Famed brief vendor Jim Chanos is placing Netflix and different leisure content material suppliers in his crosshairs.
Although he hasn’t established a proper place but, the pinnacle of Kynikos Associates sees alternative because the competitors heats up and price begins turning into a problem.
“We’re taking a look at all of them, let’s simply say that, however one or two greater than the others,” Chanos advised CNBC’s “Closing Bell” in an interview Thursday.
Netflix‘s shares specifically have been on fireplace all 12 months, rising some 53 p.c together with a 1 p.c acquire as Chanos gave his remarks from the sidelines of a convention in New York.
Nonetheless, the hedge fund supervisor sees the panorama shifting. The Federal Communications Fee’s move to eliminate net neutrality rules that search to supply equal entry to on-line content material is one explicit wild card.
“Netflix got here out this afternoon and type of lambasted the change of internet neutrality,” he stated. “But for years now they’ve stated when requested that the change in internet neutrality wouldn’t have a cloth impact on their enterprise. Which is it?”
Netflix is coming off a strong quarter in which it added a better-than-expected 5.3 million subscribers and stated it will have a content material price range of between $7 billion and $eight billion a 12 months. The corporate additionally introduced a pricing plan enhance.
“Netflix raised costs not too long ago and analysts after all simply assume most of that falls to the underside line. However what if these worth hikes actually are to offset rising prices?” Chanos stated. “I do not suppose folks have put that of their fashions.”
“The very fact of the matter is Netflix is a intermediary. They’re making and producing and financing extra of their very own content material, however on the finish of the day so is everybody else now.”
Chanos is thought for different high-profile bearish positions, notably towards electrical automotive maker Tesla.
He additionally has stated he’s betting towards hamburger chain eating places because the business condenses, and in September introduced a brief towards Continental Resources.
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