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.
Lyon's George has no interest in the companies mentioned here. The Motley Fool owns shares of Netflix. Motley Fool newsletter services have recommended buying shares of Netflix. Motley Fool newsletter services have recommended creating a bear put ladder position in Netflix. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.