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Hedgeye Communications analyst Andrew Freedman was one of the lone voices on Wall Street who correctly went bearish on Netflix (NFLX). 

In fact, he was just one of three analysts (out of 40) short Netflix into the quarter, after issuing his original short call in March 2019.

Now, following its horrible Q2 earnings report, Freedman says plenty of downside remains, with slowing subscriber growth and runaway spending on content.

“This is going to be a [subscriber] story until it’s not, but that will probably be when the stock is closer to $150,” Freedman explains in the clip above.

“When we launched this short deck, we said that our bet here is that this content-sub flywheel was going to crack. And that’s exactly what we’re starting to see. As their liabilities and content obligations are fixed over multiple years, they don’t have the ability to turn on and off the spigot like some of their peers.

This is not a Ferrari going down the highway, this is more like a Mack Truck at this point.

So, there’s very little they can do in the short term to really curb the cost of content spend.”

Watch the full clip above for more.

Freedman: Why I'm Still Short Netflix - real time alerts