May 8 (Bloomberg) -- James Chanos, founder of Kynikos Associates Ltd., said he was betting against Seagate Technology Plc as the switch to cloud computing reduces demand for hard disk drives.
“We think that mean reversion will happen in this business, sooner rather than later,” he said at the Sohn Investment Conference in New York today.
Seagate shares, which closed at a record $42.32 today in New York, fell 4.3 percent in electronic trading. The shares have advanced 39 percent so far this year.
Chanos said there is a lot of insider selling at Dublin-based Seagate. The hard-disk drive business is suffering as the amount of disk storage exceeds demand and that cloud computing is more efficient for personal-computer users, Chanos said.
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