Einhorn’s short position on Amazon
Now that we’ve discussed how David Einhorn’s short bets on Tesla (TSLA) have gone wrong, let’s take look at the performance of Amazon.com (AMZN) and how Einhorn’s short bets on the stock are becoming costlier.
Einhorn recently stated: “The second quarter was a bit of a head-scratcher. Our five biggest longs reported earnings that met or exceeded expectations, while our shorts announced earnings that mostly disappointed. The bubble basket was particularly frustrating.”
Amazon and Whole Foods Market deal
Einhorn is skeptical about the Amazon’s acquisition of Whole Foods Market (WFM). He believes Amazon’s interest in buying WFM will not make for a great business deal. By contrast, legendary investor Bill Miller is optimistic about Amazon’s Deal with Whole Foods, and Miller is a great fan of Amazon stock, which he believes has a huge potential and could even double in the next three years.
Still, Einhorn stated: “When companies announce large acquisitions, they typically explain the implications and strategy. AMZN has said nothing and left the interpretation to the market’s imagination, which for the time being skews optimistic.”
On a YTD (year-to-date) basis, Amazon has returned nearly 36% as of July 19, 2017. The broader market S&P 500 index (SPY) (QQQ) returned nearly 9.5% during the same time period. In the second quarter of 2017, Amazon returned nearly 9.4%.
According to an institutional ownership report, Vanguard Group was the first-largest investor in Amazon as of March 31, 2017, with 26 million shares. BlackRock (BLK) was the second-largest investor, with 23 million shares.
Now let’s look into Greenlight Capital’s top sells as of March 31, 2017.