It has been an interesting week for Netflix (NFLX -3.92%). 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.