Short-seller Andrew Left told Real Money Tuesday that he has a "very large" short position against e-commerce furniture seller Wayfair (W) , which he once called "the most mispriced stock" his firm, Citron Research, has seen "in years."
Left said he maintains his position, despite Wayfair shares sliding 17% in morning trading Tuesday to about $39.95, following a disappointing second-quarter earnings report, in which an adjusted loss of $0.43 was narrower than analysts had expected, while sales of $787 million topped expectations by nearly 1%. But Wayfair has yet to post positive quarterly income since going public in October 2014.
"Believe it or not, Wayfair is very large position of mine," Left said Tuesday. "I just dont see whats going to change," he said, arguing that Wayfair's e-commerce model will not stack up against what he views as more-established sources. "Furniture is not meant to be sold like this," he concluded. "You'll lose to Amazon ( AMZN) ; you'll lose to Williams-Sonoma ( WSM) ."