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.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.