What Icahn's Stake in Netflix Means to Investors

A method to Icahn's madness.

Blake Bos
Blake Bos and Andrew Tonner
(TMFBos)
Nov 1, 2012 at 9:13PM
Consumer Goods

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.