November 2, 2012
It has been an interesting week for Netflix (Nasdaq: NFLX ) . Shares for the company closed up more than 14% yesterday after the news that activist investor Carl Icahn acquired a 10% stake in the company.
Lyons George looks at three possible reasons that Icahn may have taken this stake:
- He expects Netflix may be acquired and wants to ride the inevitable pop.
- He wants to fire, or at the very least correct, Reed Hastings
- He may simply think the stock is undervalued and want to ride the stock to its full valuation.
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Editor's note: In the video, Lyons said "James Icahn" but meant "Carl." The Fool regrets the error.