A new parlor game: which tech stocks is David Einhorn shorting?
While that’s the economic background, it’s not even the interesting part. Rather, it’s the parlor game around precisely which companies Einhorn is that deserves the most attention. I would put Facebook forward as a candidate, partly on the grounds that its valuation is very high and partly on the grounds that companies that grow explosively through network effects can also shrink alarmingly quickly as a result of the same effects – and partly, well, because I just don’t like using it.
Smart people in hedge fund offices around the world are surely offering up the names of companies they think Einhorn is shorting on any similar logical or illogical grounds.
I’d add that King, the recently IPO’d maker of Candy Crush, probably isn’t on the list however tempting it looks. You can’t short stock immediately after an IPO and I don’t think they’ve been out long enough yet. And I also don’t think Apple will be on the list, as they’re looking very cheap indeed at the moment based on traditional valuation methods.
Full article A new parlor game: which tech stocks is David Einhorn shorting? | PandoDaily.
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