The man, the legend, Carl Icahn revealed a substantial 10% stake in Netflix (NASDAQ:NFLX) this week. Though Icahn has not been successful with similar companies in the past (ex: Blockbuster), there may be a method to his madness after all.

Even though Netflix has fallen from its previously lofty valuation of around $300 a share, it's risen more than 40% since early August, and rewarded recent shareholders handsomely. 

However, the real question is whether these gains can continue. With direct competition such as, Amazon (NASDAQ:AMZN), Google (NASDAQ:GOOGL), and Microsoft (NASDAQ:MSFT) Netflix's growth will only be more difficult in the future.

Andrew Tonner has no positions in the stocks mentioned above. Blake Bos owns shares of Microsoft. The Motley Fool owns shares of, Google, Microsoft, and Netflix. Motley Fool newsletter services recommend, Google, Microsoft, and Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.