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.
David Meier has no positions in the stocks mentioned above. John Reeves owns shares of Verizon Communications. The Motley Fool owns shares of Microsoft and Netflix. Motley Fool newsletter services recommend Microsoft and Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.
More from The Motley Fool
Microsoft Earnings: Will Strong Growth Persist?
Can strong growth in cloud services and Office 365 help revenue rise nicely in Q2?
2 Great Stocks You Can Buy and Hold Forever
Both of these stocks have positioned themselves for nearly limitless growth potential long into the future.
2 No-Brainer Stocks to Buy in Tech
For investors in search of reliable, steady growth and maybe a bit of income, these two stocks look like slam-dunks.