With Netflix Back To 52 Week Lows, Here Are The Biggest Losers

Tyler Durden's picture

That didn't take long. After touching a ridiculous price of $304.79 back on July 13, the collapse in the stock price of Netflix in the 2 short months since to fresh 52 week lows has been nothing short of breathtaking, and demonstrates just how effectively one can destroy their company (and also confirms that "value investors" with zero conviction in their calls are not even worth the entrance fee of their periodic soiree gatherings). Below we demonstrate who the biggest losers are in the past 10 weeks, based on the top 25 holders as disclosed in their 13F filings as of June 30. Our advice to Apple longs: take particular note of what happens when the hedge fund groupthink hotel decides to exit a burning theater stock in less than orderly fashion. And of particular insult to injury note, UBS Global Asset Management has lost $115 million in NFLX since the stock highs just over 2 months ago. Which Gamma 2 or Vega 666 trader will get blamed for that particular debacle?

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YesWeKahn's picture

They bought for their clients. The ultimate losers are stupid people trusting these funds.

Don Birnam's picture

Fidelity always seems to find itself in these lists -- and very near the top.

DeadFred's picture

Do they have any convenient Nigerian interns to blame?

Pladizow's picture

Tilson should have held.

Clueless Economist's picture

I don't feel well...I bought 10 shares @ $300

Magnix's picture

Well, what are you waiting for! Sell them!

duo's picture

Denninger had me ready to short NFLX a couple of months ago.  Having recently been burned shorting AAPL at $360, I decided to sit this one out.  See what happens when you drive the shorts away?  Free fall!

ZeroPower's picture

Why equivalent? Warrants?

GeneMarchbanks's picture

Morgan Stanley is marked for death, GS must be salivating...

OMG, I just took a look at their chart and it's been a swan dive from 200 to 134 and counting.

downtownshuter's picture

How can this be considered a hit against "value" investors?

snowball777's picture

Because they're all "buy" and no "hold".

Stax Edwards's picture

Agreed, NFLX is pure growth not value 

lolmao500's picture

I'm not gonna cry for these scumbags at JPMorgan...


Zeff's picture

Darn it, was looking for Paulson in it.

GoldbugVariation's picture

Apple?  Is that the company whose entire business for last 20 years has been based on the vision of one man ... who resigned a few weeks back?  Just sayin...

YesWeKahn's picture

I believe that this is the last leg run up. Try to short it when it gets to 450. It is basically another phone company. It will be another Nokia.

Buckaroo Banzai's picture

Um. I'd be super careful shorting AAPL.

Unlike Netflix (whose business model had a nice run but has no future), Apple has clear daylight in front of it.

Look at Apple's competition in the smart phone and tablet space. Apple makes the vast majority of profits (PROFITS) in the smartphone space, despite having a minority market share. Their competition is in complete and utter disarray. Their obvious main competitor (Google/Android) is the market share leader but MAKES NO PROFIT, and just sunk $16 billion into a doomed acquisition. Samsung is the only competitor who is doing ANYTHING right and they are way behind.

Pladizow's picture

"Yeah, well, you know, that's just like your opinion man." - http://www.youtube.com/watch?v=QsogswrH6ck

pitz's picture

That's the entire problem -- anything that is touched by Free/Open Source software eventually has the profit driven out of it. How many proprietary Unix vendors still in business? Let's see, Sun gone, check. DEC gone, check. AIX and HP-UX are basically irrelevant, check. SCO gone, check. Get the drift?

adr's picture

Apple has plenty of profit but holds no assets.  I mean really, what is Apple's building worth? That is just about all they own outside the myriad of patents they stole.Apple is just a paper company in the end so its value can plummet just like Netflix.

The iPhone will die eventually and so will the immense profit as the competition continues to erode Apple's marketshare. Why do you think Apple's legal division is working overtime.

Waterfallsparkles's picture


Aapl is up $70. since Steve Jobs Stepped down as CEO.  From $350 to $420.

Nflx is down about $100. since the pre announcement of lower subs.  Yet, they did say that it would not  affect their margins that much.

I am not really sure about Aapl at this price with Steve Jobs gone.  I do think that they will do ok for a while but without the Guru I do not know.  Without Jobs at the announcement of the new IPod 5, I am not sure how it will be received. Plus, what about new innovations without Jobs?  He was the innovator.

I personally just do not think that without Jobs the stock is worth anywhere near where it is trading.  All I think it is all about squeezing shorts to bail out the Mutual Funds and Hedge Funds.  Once people forget about Aapl it will slowly melt down every day until it is a pittance of what it is today.

pitz's picture

Jobs the innovator?  Hardly.  He wasn't even a very good leader according to the guys I know at Apple.  If anything, the stock went up because of his departure, not in spite of it.

Zeff's picture

More pains for UBS! Oh sweet!!

monopoly's picture

Is our patience paying off, so far today, you bet.

Dr. Engali's picture

Back the truck up and buy buy buy! Sorry thought I was Cramer for a minute. Scared me.

financeguru500's picture

netflix just thought they were in apple's shoes and that they could charge any price they wanted. Truth of the matter is, netflix was just an alternative for redbox and hulu. They raised their price to much and the people responded. Same would happen if redbox doubled their movie rental price.

DosZap's picture

Face it, how Netflix ever got to be a $50.00 stock is beyond me.

Their programming sucks, they get new releases 30 late,and their Roku/TV streaming pile of movie choices sucks.

Blockbuster got the new releases 30 days before Netflix(maybe still do), and their in bankruptcy.

Go figure.

SeverinSlade's picture

Agreed.  I was a Netflix member for a while but I cancelled because the content was terrible.  Nothing like watching a "new release" that came out 3 months ago.

Blockbuster's collapse was due to terrible management.  Seriously, it took them 10+ years to try to get involved in the same business as Netflix.  Had Blockbuster seen the writing on the wall ten years ago and started their DVD mail service then, they'd be a powerhouse right now.  Assuming that they had capitalized on that opp, can you imagine how strong a company they'd be if they had streaming services too?

Alas, they thought technology was going to stay in the 1980s forever. 

Below Zero's picture

Nitflix is having a 50 percent off sale. I will wait until they have a liquidation sale on their new image called Quackster. 

DormRoom's picture

why are Lulumon, LinkedIn, or OpenTable not dropping like a rock?  The P/E on those companies are ridiculuous.

drivenZ's picture

LNKD? small float and an already huge short interest. probably support from covering shorts after the last leg down. I tried to play it but it's tricky as it doesn't generally move the way you'd think.  Their earnings were predictable and moved it lower, other than that it's off the wall sometimes. 


long term trend is undeniably lower on LNKD though...when Nov rolls around and the lock-up period is over i expect to see a solid downward trend the next 12 months. Probably towards 40.  

spartan117's picture

That's ok, we still got Chipotle at $300+!!!

unununium's picture

Surprised not to see Dodge & Cox on the list.  They always seem to have a piece of the biggest losers like FNM.

j0nx's picture

Why Hastings hasn't been shown the door yet is a mystery to me and everyone else. He woke up one day about 6 months ago and swallowed a stupid pill. Guess the untenability of his business model finally caught up to him.

digalert's picture

YRC brought to you by Teamster union,

achieved zero today.

Raymond K Hassel's picture

How clueless and desperate are the NetFlix douchebags to spin out Qwikster without attempting to secure the Twitter account name first?  Makes me think they are in a huge rush, for really bad reasons. 

haskelslocal's picture

Yeah.. And I can't shake Napster from my mind when I think of Quickster. What idiot picked that name? Had to be a rush... I mean, not even QuickFlix or something similar? Talk about a breakdown... I'm sure they won't fire the douchebag CEO until it's way too late.  

laserjock's picture

So you're assuming these companies held NFLX all the way down.

hetch214's picture

and assuming some of the HFs aren't boxed.

ItsDanger's picture

Combine poor & erratic video quality, terrible audio, wait times, unimpressive selection, content costs and competition (exisitng and ease of entry), NFLX was an easy short.  Any fund manager that was long this stock, other than for a trade, should be fired immediately.

I am a Man I am Forty's picture

terrible analogy with Apple, NFLX needs to drop another 25% plus and you can start comparing numbers, not to mention the companies are completely different, you were dogging apple when it was at $200 bucks a share, gold and Apple have been the two best positions throughout this entire crisis, both should be respected

Tyler Durden's picture

The point is that herd behavior has nothing to do with fundamentals. Apple is indeed a cash flow positive company (for how long? who knows - it sure does have innovative products for now). The noted issue however, is that as pointed out recently, more hedge funds own Apple than any other stock. And just as the HF exodus in NFLX has been vicious, it will eventually come to Apple, just as it will come to gold. Remember: when the margin call comes, you always sell your winners first.

YesWeKahn's picture

Someone is manipulating the market right now. They first pumps apple to stabilize the indices, then pumps the whole market higher. Pretty soon, this game will have to stop when APPLE reaches 1/2 trillion market cap

Putty's picture

Thanks Zerohedge.  Great reminder to cancel my subscription.  Done.

J C Bider's picture

As goes the captain so goes the ship.

Stupid at the top -> Ship hits the reef.

It's time to start shooting some CEOs

haskelslocal's picture

I think you're right.... However it's not just being stupid, (there's plenty of CEOs playing the guessing game) it's demonstrating that stupidity. Full Retard.