Seeking Alpha

Icahn lowers Netflix stake to 4.5%

  • In a new 13D, Carl Icahn discloses he has lowered his stake in Netflix (NFLX) to 4.52%. Icahn had nearly a 10% stake in the company when he first disclosed his investment a year ago.
  • Shares are up over 4x since Icahn first bought in. He admitted earlier this month Netflix's run-up meant shares are no longer a "no-brainer."
  • NFLX -2.2% AH after falling 9.2% in regular trading.
  • Earlier: Netflix turns negative post-earnings
  • Update: Icahn pared his stake in part by unloading 2.4M Netflix shares earlier today at $341.44. Shares are currently at $317 AH.
  • Update 2: Icahn on Twitter: "Sold block of NFLX today. Wish to thank Reed Hastings, Ted Sarandos, NFLX team, and last but not least Kevin Spacey."
Comments (31)
  • HZLIU
    , contributor
    Comments (212) | Send Message
     
    Someone knew something this morning hype that could drive some short out and some long took profit. 4:00pm yesterday, NFLX warned euphoria. Icahn took the hint and sold half and already got all the money back and plus. Who is now holding the bag?
    22 Oct 2013, 05:20 PM Reply Like
  • Yteeld
    , contributor
    Comments (1150) | Send Message
     
    Give credit where credit is due. He is one hell of an investor both smart and prudent to take some profits. Are you listening Ackman?
    22 Oct 2013, 05:27 PM Reply Like
  • HZLIU
    , contributor
    Comments (212) | Send Message
     
    Icahn thanked Kevin Spacey for his part during NFLX euphoria rise. This is a good one.
    22 Oct 2013, 05:36 PM Reply Like
  • SoldHigh
    , contributor
    Comments (1013) | Send Message
     
    Mint trade by Icahn. NFLX 2 handle a lock now.
    22 Oct 2013, 05:49 PM Reply Like
  • HZLIU
    , contributor
    Comments (212) | Send Message
     
    Just went through 13 D. Icahn started to sell on 10/10/13, 10/11/13 and 10/14/13, small amount just testing water, selling ~ half million shares at $304~308. But on 10/16 and 10/17, Icahn actually bought 113,491 shares, ~$322. 10/18 and 10/20 leading to the earning, someone might took cue from Icahn, push stock higher and higher. Now who were the buyers on 10/21 AH and today before bell and first couple hours of regular? Tomorrow will be very interesting day. The real test how tough the NFLX bull. If the trend turns, Icahn could sold rest of half. Each $10 drop costs him $20~30m.
    22 Oct 2013, 05:57 PM Reply Like
  • loony911
    , contributor
    Comments (6) | Send Message
     
    Interesting technical description on CNBC AH
    http://yhoo.it/H0GZYE
    22 Oct 2013, 06:07 PM Reply Like
  • Mark Krieger
    , contributor
    Comments (4103) | Send Message
     
    what a scam...the little retail investor ends up holding the bag..NFLX was a bubble waiting to be popped, well...it has officially popped. Already down more than $80 from yesterday's AH high
    22 Oct 2013, 06:12 PM Reply Like
  • DMCstrategies
    , contributor
    Comments (71) | Send Message
     
    The only people 'holding the bag' are the ones who bought AH yesterday or early this morning, I'm not sure how that translates into the poor 'little retail investor'?
    22 Oct 2013, 06:18 PM Reply Like
  • DMCstrategies
    , contributor
    Comments (71) | Send Message
     
    I would assume that 'little retail investor(s)' usually don't trade in the AH market.
    22 Oct 2013, 06:27 PM Reply Like
  • markrpat
    , contributor
    Comments (207) | Send Message
     
    One week's worth of gains wiped out. Not exactly what I'd call bubble bursting, not yet anyway.
    22 Oct 2013, 06:29 PM Reply Like
  • flux8
    , contributor
    Comments (590) | Send Message
     
    Agree. So Icahn's gain is the average sheep investor loss. Though I'm not sure how much sympathy I have for the average investor if they thought NFLX was a good buy at nearly $400.
    22 Oct 2013, 06:31 PM Reply Like
  • movies555
    , contributor
    Comments (826) | Send Message
     
    As for the AH market and retail, Cramer has had to tell people not to buy in the AH after he's discussed something on his show. I'd also say retail is likely holding the bag to a significant degree in this case.
    22 Oct 2013, 07:03 PM Reply Like
  • bdy
    , contributor
    Comments (151) | Send Message
     
    Exactly. People who bought near 400 are very ignorant and kind of deserved to lose money and hopefully they learned a good lesson.
    22 Oct 2013, 07:04 PM Reply Like
  • rambler1
    , contributor
    Comments (477) | Send Message
     
    Be interesting to think who will believe it's a good buy @ $300 now that Icahn is a seller.
    22 Oct 2013, 07:23 PM Reply Like
  • Storm Warning
    , contributor
    Comments (156) | Send Message
     
    I think they deserve sympathy after the way this was presented to them by the media and Icahn. "No longer a no-brainer..."

     

    Really, what's the difference between this and those penny stock scams you get in emails?

     

    The only difference is this scam was presented in depth by the media which probably gave it some extra validation to some investors. The media played along expecting they could play it for a few ad dollars as well. Pump-and-dump, it's a scam.
    22 Oct 2013, 07:49 PM Reply Like
  • Energysystems
    , contributor
    Comments (1125) | Send Message
     
    The only difference is, whether you fall for it or not. If you did? Too bad. I have no sympathy for people attempting to jump on the bandwagon. They were greedy, they got burned.
    22 Oct 2013, 07:57 PM Reply Like
  • bdy
    , contributor
    Comments (151) | Send Message
     
    Well said energysystems
    22 Oct 2013, 08:57 PM Reply Like
  • Storm Warning
    , contributor
    Comments (156) | Send Message
     
    The fact is...it's still a scam.

     

    I don't know and don't care how many retail investors are trading in the AH, and I don't think that is important here. The trade around the latest earnings is not what I see as a concern.

     

    What is important is how certain elements of the media allowed Icahn to pump this scam on TV.

     

    I see the presentation [promotion] of this Icahn trade as no different than a penny-stock email scam.

     

    For me, I don't trade on months-old data and I would never buy into these far-too-expensive hyper "growth stocks", so I'll never get close to this trade.

     

    But this was a scam, and I don't think the way it was presented in the media is legit. Given the parallels to penny stock emails, I'd like to see what the SEC has to say about it.
    22 Oct 2013, 09:49 PM Reply Like
  • Patent News
    , contributor
    Comments (1321) | Send Message
     
    not a scam at all. retail longs just are easily gullible.
    23 Oct 2013, 12:26 AM Reply Like
  • DMCstrategies
    , contributor
    Comments (71) | Send Message
     
    Any 'little retail investor' who waited until $320+ share price, a p/book of 17, and a PE of over 500 to get into NFLX needs to get out of the stock market ASAP and go buy some GIC's
    22 Oct 2013, 06:24 PM Reply Like
  • mobyss
    , contributor
    Comments (2041) | Send Message
     
    PUMP...

     

    And DUMP!
    22 Oct 2013, 08:21 PM Reply Like
  • Boring Stock Lover
    , contributor
    Comments (26) | Send Message
     
    You mean a company producing negative FCF isn't worth 25B? Who would've thought?
    22 Oct 2013, 08:26 PM Reply Like
  • buyandhold???
    , contributor
    Comments (907) | Send Message
     
    icahn is having a little too much fun with all these disclosures. He knows he can pump or dump any stock now, he has a god complex, this wont end well

     

    first apple now tesla, what next icahn buys coca cola and ko shoots up 20%
    22 Oct 2013, 08:45 PM Reply Like
  • Chris Lau
    , contributor
    Comments (1921) | Send Message
     
    Icahn sounds like he just accepted an academy award, and posted his speach on twitter.

     

    Now if only he could get (NUAN) to go up. Better tweet about it.
    22 Oct 2013, 09:26 PM Reply Like
  • bajadoc
    , contributor
    Comments (67) | Send Message
     
    Come guys! Lets be serious. NFLX is a $77 stock. Look at fundamentals like Price/Sales, PEG, even PE. If you want to gamble, go to Las Vegas>
    22 Oct 2013, 09:35 PM Reply Like
  • bajadoc
    , contributor
    Comments (67) | Send Message
     
    Next are these bubbles, TSLA, FB, WDAY, oh, and that Elon Musk scam, SCTY! LOL. Its always the same old wine in a different bottle.
    Invest or gamble! you can't do both!!!! LOL.
    22 Oct 2013, 09:38 PM Reply Like
  • Mark Krieger
    , contributor
    Comments (4103) | Send Message
     
    he's getting out while the getting is good. He realizes that the supply of greater fools is not going to last forever.
    22 Oct 2013, 09:49 PM Reply Like
  • Islandtime
    , contributor
    Comments (30) | Send Message
     
    i just wish they were forced to make their trades during normal hours. few things distress me like the `after hours' plays that kill my meager gains. and now we must contend with icahns next play.
    23 Oct 2013, 01:02 AM Reply Like
  • xiangyimeng
    , contributor
    Comment (1) | Send Message
     
    NFLX is a double in 3 years. I am holding it for LT.
    23 Oct 2013, 02:37 AM Reply Like
  • Karlos DW
    , contributor
    Comments (28) | Send Message
     
    Be super interesting to see how it plays out today, still wouldn't bet against it popping back up a couple of bucks. Over the longer term I suspect this is heading down as the irrational speculators head out to hunt the next "big" story, may even cover it's April 23rd gap up at around $175.
    23 Oct 2013, 03:53 AM Reply Like
  • HZLIU
    , contributor
    Comments (212) | Send Message
     
    Icahn Enterprises LP announces Sale of Netflix Shares, PRNewswire; Father vs son. Son say Netflix is significantly undervalue; Father took Hastings' cue and sold. If NFLX is up significantly in next few year, son wins. If NFLX tanks, father wins. Waiting for next episode.
    23 Oct 2013, 08:19 AM Reply Like
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