Whitney Tilson announced on CNBC today that T2 Partners has been adding to its holdings of Netflix, despite lousy Q2 guidance in an earnings report it released last night. Because of this, the stock has been getting killed today.
But Tilson argued today that Q2 is a typically sour period for Netflix, and that the company's strategy and fundamental strengths haven't changed:
"When [a stock] gets cheaper and the story stays the same, we actually add to it, which is exactly what we did with Netflix. We don't look to the market for signals, we do our own analysis. And by the way, the stock—even after today's decline—right now—the stock started the year under 70 dollars. So the stock is up almost 30 percent this year. It's one of our biggest winners, so we think the market is giving us a gift. It gave us a huge gift earlier this year, we harvested and banked a lot of profit, and now we're getting another bite at the apple. So thank you, Mr. Market."
Then again, Tilson also made a bad call on Netflix last year, shorting the stock right before it soared, and covering his bet right before share price fell dramatically.