Billionaire hedge fund manager Cohen agrees to buy Mets
FILE - In this Sept. 9, 2020, file photo, Citi Field is viewed at dusk before a baseball game between the New York Mets and the Baltimore Orioles in New York. Billionaire hedge fund manager Steve Cohen has agreed to purchase the Mets from the Wilpon family. (AP Photo/Kathy Willens, File)NEW YORK – Billionaire hedge fund manager Steve Cohen has agreed to buy the New York Mets from the Wilpon and Katz families. Cohen also entered negotiations to buy the Mets last year, but the deal fell apart in February. The limited partnership shares were sold after a proposed $200 million sale of a stake of the Mets to hedge fund manager David Einhorn fell through in 2011.
David Einhorn says the Netflix story is 'busted' and he now has 'substantial' bet against stock
"We have been negative on NFLX's earnings prospects for a long time, and we used the late- 2019 bounce in the shares to make it a more substantial investment," wrote Einhorn in the letter. As competition increases, and Netflix continues to spend cash on original content, Einhorn said the outlook for the stock is weak. The hedge fund manager, who's made winning bets against busts such as Enron, pointed to increased competition from new streaming services as a major challenge for Netflix. There are now a half-dozen subscription services and in the coming year there will be additional credible entrants with deep content libraries," Einhorn wrote. The letter comes as Netflix is set to report its fourth-quarter earnings after the market close Tuesday.cnbc.com
Elon Musk sends short shorts to detractor
"Please allow us to send you a small gift of short shorts to help you through this difficult time," Musk wrote, invoking a jab he has used with Tesla short sellers, or investors who bet against a company's stock performance. Musk, who is known for publicly sparring with Tesla naysayers, previously sent Einhorn a box containing several pairs of short shorts, to which Einhorn responded with a sarcastic thank you via Twitter. Einhorn's Greenlight Capital has long had a large short position in Tesla, meaning it loses money when Tesla's stock performs well. When Tesla posted a surprise profit on October 23, sending its share price up 30%, Greenlight took a significant hit. One lawsuit filed by Tesla shareholders alleges Musk engineered the purchase of SolarCity, in which he was the majority shareholder, as a a bailout of the troubled solar panel company.
Chewy founder: We're no Pets.com
He then compared Chewy, the company I founded in 2011 and ran as CEO until last year, to the ill-fated Pets.com. Mr. Einhorn's primary complaint seems to be that Chewy is valued at 30 times what Pets.com was at its peak, claiming this as a reason for skepticism. With a long enough financing runway, Pets.com and living.com may have been able to acquire enough customers to achieve the needed scale. Since 2014, Chewy has grown from $200 million in sales to over $3.5 billion last year, now has over 11 million customers and purchases by existing customers represent 90% of revenue. While Mr. Einhorn may view marketing spending as throwing good money after bad, that is a misunderstanding of the lifetime value of a Chewy customer.cnbc.com