Carl Icahn acknowledges that his son Brett and fund co-manager David Schechter were more right on Netflix than he was
Billionaire investor Carl Icahn acknowledges he sold his Netflix shares too soon, undermining advice from his son, who believed the stock was undervalued. Icahn said his son Brett and fund co-manager David Schechter were correct about their prediction about shares of the streaming company.
Icahn still made huge profits
Icahn bought Netflix shares at an average price of $58 each and earned a profit of between $700 million and $800 million by selling them in the fall of 2013, according to Reuters. Icahn offloaded 2.99 million Netflix shares in October 2013 when the stock spiked over five-fold in fourteen months. Almost a year ago, the online streaming company’s shares were swinging at around $386 per share, and on Wednesday, the stock closed at $442.46.
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Icahn, during an appearance on CNBC, said that he was worried and conservative about Netflix with regard to “net neutrality,” “which has seemed to go away.” He was talking in context of the U.S. Federal Communications Commission’s work to frame new regulations for internet service providers.
“That one storm cloud has gone away so I agree completely now with Brett and Dave on Netflix. I wished I had bought more, but hey, look, you can’t cry about making the money that we made on it,” Icahn said.
Brett Icahn still bullish on Netflix
Brett Icahn still insists that Netflix remains significantly undervalued. For its part, Netflix every now and then proves why big names are bullish on its prospects. The leading video streaming service provider impressed all at the Screen Actors Guild (SAG) Awards on Sunday by winning three awards. The company’s original shows were nominated in five of the categories, and it was able to grab an award in three of them.
Also to expand its market share further, Netflix is coming up with some new superhero shows from Marvel which are expected to be popular among superhero lovers. The four shows that will air on Netflix are Daredevil, AKA Jessica Jones, Luke Cage and Iron Fist. Also once these four shows have been added, there will be a series clubbing the heroic acts of all four as The Defenders.