Netflix: Should You Sell the Icahn Rally?

Shares of Netflix (Nasdaq: NFLX  ) are up 10% since activist investor Carl Icahn announced that he had taken a 9.98% stake in the company. Should you sell this rally? Buy more? Despite fresh evidence that Netflix is handling orders of magnitude more traffic than competitors Amazon.com (Nasdaq: AMZN  ) and Hulu -- suggesting precisely the sort of "dominant market position" Icahn referred to in explaining why he bought -- history suggests a wait-and-see approach could be more profitable. Find out more in the following video.

While there's undeniable value in the Netflix franchise, it's too early to tell whether its global ambitions will pay off at the level CEO Reed Hastings wants or expects. That's why we're tracking the business so closely. In a just-released premium research report, we look not only at his strategy, but also the risks and long-term opportunities for the company. We're also offering a full year of updates as key news hits, so make sure to click here and claim a copy today.


Read/Post Comments (0) | 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.

Be the first one to comment on this article.

DocumentId: 2104576, ~/Articles/ArticleHandler.aspx, 7/24/2014 1:22:01 AM

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