Pity the traders that short zombies. They're likely to get eaten alive, says Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova in the following interview with the Fool's Erin Miller.
And there are a growing number. Short interest in Netflix (NASDAQ: NFLX ) still stands at around 15%, while AMC Networks (NASDAQ: AMCX ) is now up to 1.6% of its shares sold short. This is what happens when you trade for a premium valuation.
Yet short-sellers of both names are wading into dangerous territory. AMC is rallying on the performance of its signature horror series, The Walking Dead, which attracted 12.4 million viewers on Sunday night. The show also once again won the prized 18-49 demographic.
Tim says the performance is reflective of a large and growing appetite among consumers for differentiated content that's far afield of network television, and he expects years of outsize growth for the companies that fund it -- AMC and Netflix, notably.
Get Tim's full take in the video, and then leave a comment to let us know whether you think the time is ripe to be shorting AMC, Netflix, and their premium entertainment peers.
For further analysis of how Netflix is changing entertainment, check out our premium research report in which we take you inside Netflix's entertainment empire and tell you what the streaming sensation is really worth, and whether the stock deserves a place in your portfolio. Access your report now by clicking here.