EXCLUSIVE: Andrew Left Shorted GameStop — Here Are His 3 Long Stock Ideas
Best known as a short seller and the founder of Citron Research, Andrew Left went short on GameStop Corporation (NYSE:GME) in 2021 and again in May 2024.
While Left has made money shorting stocks, he often looks for opportunities of stocks that can grow and increase in share price.
What Happened: Left took a break from writing short reports after the GameStop short squeeze of 2021 that he lost money on.
"The rewards aren't there anymore,” Left told Benzinga in an interview. “There's so much against you."
While Left still shares short ideas, he often shares the stocks that he sees as multi-baggers in his social media posts nowadays.
On Thursday, Left shared three stocks he likes during an exclusive interview with Benzinga.
Left's Stock Picks
The GEO Group (NYSE:GEO): Left said he started to write about the private prison company when it was $8 a share. The stock now trades at $13 per share.
"Definitely think the stock's going to $30," Left said, citing how GEO Group handles immigration detention centers and prisons, and has government contracts in place.
"They do the job that noone wants to do."
Left said the Biden administration tried to do away with private prisons, which left the stock for dead. A monster news cycle about the migrant cycle provides a perfect setup for the company and stock, Left said.
Edgio Inc (NASDAQ:EGIO): The edge computing company is an interesting play, according to Left. "They had terrible past management,” but it now has "top tier management." Edgio’s new CEO, Todd Hinders, previously worked at Amazon.com on the AWS cloud vertical.
The Citron Research founder said the company is one of the leaders in the streaming market and has helped with Super Bowl streaming efforts. But one of the items that could be hold the company back is delayed financials. Left thinks that when financials are reported, investors will be more excited about the future.
Trading with a market capitalization of around $60 million, Left said the multiples are incredibly low compared to peers with an estimated $500 million in annual revenue.
"I think the stock goes to $30," he predicts.
Left also says Edgio could be a consolidation play as companies have to be able to deliver live-streaming and the company is one of the ways to make this happen.
"They're going to sell themselves in my opinion."
Jumia Technologies (NYSE:JMIA): Left also highlighted the African e-commerce company as a long idea after being bearish.
"I own the stock,” he said. I bought more of the stock."
Management is trying to turn around the company, Left added praising the CEO for doing “the best job in the world.”
Left also sees Jumia as a potential play on a buyout or investment from a large company like Walmart, Alibaba, Amazon or Softbank — companies that would love exposure to e-commerce in Africa.
"I've been bullish for a while,” he said, expecting Jumia’s market cap to be "much higher in the coming years."
Pictured: Citron Research founder Andrew Left speaks with Benzinga Thursday, May 16, 2024.