Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Carl Icahn Cuts His Netflix Stake in Half, Makes Giant Profit

Carl Icahn, Netflix: In a 13D filing just reported to the SEC, Carl Icahn disclosed a 4.5% stake in Netflix, Inc. (NASDAQ:NFLX), about half what he had owned previously. Netflix stock is down after hours as a result, and here’s what Icahn had to say via Twitter:

Screen Shot 2013-10-22 at 4.53.59 PM

The shares were sold from the Sargon portfolio, managed by Icahn’s son Brett, and David Schechter. The shares have been sold after Carl Icahn’s decision, based on the 457% growth of the price of the held shares, purchased at $58 apiece. To sell the shares Carl Icahn and Icahn Enterprises signed an agreement with Brett Icahn and David Schechter, in terms of which the latter will still get compensations based on the performance of Netflix’ stock, Icahn said in a press release.

Brett Icahn and David Schechter also said that despite the share price growth since the original investment, they still consider the stock as being undervalued. Since the low subscription price of Netflix of $7.99 per month, and the high-quality content makes Netflix an attractive bargain for consumers, the managers of the Sargon Portfolio believe that the company has a potential to add more subscribers, and with the currently low price, it might consider slightly increasing the monthly subscription fee, which will significantly increase the revenue of the company.

Disclosure: none

Recommended Reading:

Poker Night on Wall Street: The Unofficial Odds

Sigma Designs: Raging Capital Management Decreases Position to Below 5%

Hedge Fund News: Stanley Druckenmiller Calls Himself ‘Washed Up,’ John Paulson & Chris Hohn

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.