Investor Andrew Left was one of the central figures of the GameStop Corp GME storyline in 2021. One year later, Left shared his thoughts on how things have changed for short sellers.
What Happened: January 2021 could go down in stock market history for one of the most unlikely storylines playing out in a David vs. Goliath tale.
Retail traders rallied around shares of video game retailer GameStop and other so-called “meme stocks” that had been attacked by short sellers and hedge funds.
Left, founder of Citron Research, announced a short position in GameStop and became one of the biggest enemies of WallStreetBets and retail traders. Left shared his thesis on why shares of GameStop were overvalued live on Benzinga’s YouTube, one of the top 10 moments of 2021 for Benzinga YouTube.
“Things have changed for short sellers — you don’t want to be in a crowded short,” Left told the Wall Street Journal on the one-year anniversary of the “meme stocks” rally.
As one of the key short sellers against GameStop, Left was targeted by retail traders. GameStop fans and shareholders shared Left’s personal information; hacked his social media accounts, including his YouTube; and threatened his family.
A rise in GameStop shares to a high of $483 also cost Left money. The investor lost tens of millions of dollars.
The Aftermath: Left has since moved from California to Florida, according to the WSJ.
“I’ve spent more time being a dad and a husband. I don’t need to be a public face and spark the ire of the Reddit crowd.”
Left said rising interest rates could be bad for high-priced stocks, but he won’t rejoin the battle over stocks.
After the GameStop aftermath, Left announced that Citron Research would no longer publish short reports and instead focus on companies that investors should buy that could be multibaggers.
“Citron Research will no longer be publishing short reports,” Left said.
The hope is to find companies that can rise five times or 10 times in the future, he said.
Citron’s long stock recommendations were up 121% in 2020, something Left said was overlooked with all the focus on Citron’s short reports.
The latest stock recommendation from Citron Research is Blue Apron Holdings APRN.
GME Price Action: GME shares trade at $94.24 at the time of writing. While shares are significantly down from highs of $483, GME shares are trading much higher than a $20 price target that Left had originally shared.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.