Icahn's Bullish Case for Netflix

The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics around the investing world.

Netflix shares are up on the news that Carl Icahn has purchased a 10% stake in the company. What a pleasant surprise! According to the filing, Icahn believes Netflix is attractive because of its "dominant market position and international growth prospects." DISH Network's decision to give up on building Blockbuster into a Netflix killer shows Netflix's strength. The filing also says Netflix may hold "significant strategic value," meaning that someone might want to buy it. Some rumors have been making the rounds. There was speculation that Verizon would be a buyer. Instead, that company struck a deal with Coinstar. There was also a rumor that Microsoft might want to buy Netflix.

John and David own shares of Netflix in their real-money portfolio and might be looking to increase their stake in the company. That's because they see the benefits of it growing its streaming service. Netflix has a mountain of viewing data and a management team that knows how to use it to run the business. What's more, as the streaming service scales, it starts to become very valuable in the future, which is why investors should follow Icahn into Netflix.

For ongoing coverage, check out our brand new premium report on Netflix. Inside, you'll learn about the key opportunities and risks facing the company, as well as reasons to both buy and sell its stock. We're also offering a full year of updates as key news hits, so make sure to click here and claim a copy today.

David Meier has no positions in the stocks mentioned above. John Reeves owns shares of Verizon Communications. The Motley Fool owns shares of Microsoft and Netflix. Motley Fool newsletter services recommend Microsoft and Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (1) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2093453, ~/Articles/ArticleHandler.aspx, 8/20/2014 4:46:46 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement