Citron Capital short Chewy, Wayfair on 'challenges of achieving profitability'
In its first half of 2019 investor letter, Citron Capital says that, "Our biggest loser was Wayfair (W), which we remain short along with Chewy (CHWY). These are two business models with valuations that do not reflect the challenges of achieving profitability in the e-commerce market." On the other hand, "going into the second half of 2019, on the long side we're most excited about our position in Invitae (NVTA)," the letter reads. "While Invitae was a contributor to fund performance during 1H 2019, we continue to add to our position at current levels. One of Citron's biggest mistakes in our 17- year history was shorting Exact Sciences (EXAS). We underestimated the multiple premium that the market was willing to award to differentiated diagnostic testing businesses. Citron is now turning lemons into lemonade. We see Invitae as the clear winner within the mega trend of the genetic testing market and expect the stock to trade to $100 in the next 24 months." Reference Link W CHWY NVTA EXAS