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Citron Research founder Andrew Left is shorting GameStop<\/a> again, arguing the stock is \u201cextremely overvalued\u201d after its latest meteoric rise<\/a>. The veteran short seller was burned on his first bet against meme-stock traders\u2019 favorite company in 2021, eventually closing out his short position at a 100% loss and halting the publication of short reports after he said an \u201cangry mob<\/a>\u201d of fanatical GameStop shareholders harassed him.<\/p>\n But Left, who made his name with big bets against the pharmaceutical giant Valeant<\/a> and China\u2019s now-defunct property giant Evergrande<\/a>, told the Wall Street Journal<\/em> that he made a profit when he bet against GameStop again last month.\u00a0<\/p>\n The video game retailer saw its shares surge from just over $10 at the start of May to an intraday peak of $64.83 by May 14 after Keith Gill\u2014the trader, and de facto meme-stock leader, who goes by Roaring Kitty<\/a>\u2014referenced the company in social media posts, leading retail investors to pile in. After that initial surge, GameStop stock eventually fell to a low of $18.93 on May 23, and Left says he was able to close out his short position for a profit during this period, he says.<\/p>\n On Monday, the Citron Research founder doubled down on his bearish bet against GameStop after Gill posted a screenshot on Reddit that implied he owns over $100 million<\/a> of the retailer\u2019s stock. \u201cWhen I saw it, I shorted it,\u201d Left told Bloomberg<\/em><\/a> of the Reddit post.<\/p>\n The surge in GameStop shares simply \u201cmakes no sense\u201d and shows the U.S. has become a \u201cnation of gamblers,\u201d he said in his Wall Street Journal<\/em> interview.<\/p>\n GameStop stock has risen more than 33% from its opening price on Monday, but fallen over 23% from that day\u2019s intraday high. That means the potential profitability of Left\u2019s current short position, at least at the moment, depends on the price at which he was able to secure shares for the bet.<\/p>\n Either way, the veteran short seller said that he did learn not to make large bets against \u201ccult\u201d stocks when he was burned shorting GameStop back in 2021, and his latest short compromises a small portion of his portfolio. \u201cIt\u2019s a cult stock. You don\u2019t do that on cult stocks,\u201d he told the Journal.<\/em> \u201cFool me once, shame on you. Fool me twice, shame on me.\u201d<\/p>\n<\/div>\n\nSubscribe to the CFO Daily newsletter to keep up with the trends, issues, and executives shaping corporate finance. Sign up<\/a> for free.<\/div>\n<\/div>\n