Pity the traders that short zombies. They're likely to get eaten alive, says Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova in the following interview with the Fool's Erin Miller.
And there are a growing number. Short interest in Netflix still stands at around 15%, while AMC Networks is now up to 1.6% of its shares sold short. This is what happens when you trade for a premium valuation.
Yet short-sellers of both names are wading into dangerous territory. AMC is rallying on the performance of its signature horror series, The Walking Dead, which attracted 12.4 million viewers on Sunday night. The show also once again won the prized 18-49 demographic.
Tim says the performance is reflective of a large and growing appetite among consumers for differentiated content that's far afield of network television, and he expects years of outsize growth for the companies that fund it -- AMC and Netflix, notably.
Get Tim's full take in the video, and then leave a comment to let us know whether you think the time is ripe to be shorting AMC, Netflix, and their premium entertainment peers.
For further analysis of how Netflix is changing entertainment, check out our premium research report in which we take you inside Netflix's entertainment empire and tell you what the streaming sensation is really worth, and whether the stock deserves a place in your portfolio. Access your report now by clicking here.
The article These Stocks Are a Nightmare... for Short-Sellers originally appeared on Fool.com.
Erin Miller has no position in any stocks mentioned. Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of, and had a long-term call options position in, Netflix at the time of publication. Check out Tim's Web home and portfolio holdings or connect with him on Google+, Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.The Motley Fool recommends Netflix. The Motley Fool owns shares of Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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