Carl Icahn Just Made About $800 Million Off Of Netflix Bet

I'm not sure about a lot of you, but when Netflix split their package into two separate costs, for streaming and the DVD rentals, I thought the company was good as dead. Subsequently, the stock began to drop at a rapid rate from the mid $300's to as low as $54.60 per share. Many felt their days were numbered and that it would only be a matter of time before another company stepped in to acquire them. Well, Billionaire investor Carl Icahn saw something and decided to pick up a 9% share of the company when the stock prices were at rock bottom. 14 months later he turned a 457% gain on that investment making nearly $800 million... I know most of us hate those who are uber successful, but it's hard to not be a little impressed with people who are brilliant enough to make a boat load of money in no time.

Billionaire investor Carl Icahn has cashed in big on Netflix Inc, taking advantage of a 457 percent gain in its shares since he bought more than 9 percent of the streaming video company only 14 months ago.

Icahn, whose firm acquired Netflix shares for an average price of $58, is booking profits of between $700 million and $800 million on the 3 million shares he sold in the 12 days beginning on October 10 and ending on Tuesday, according to an SEC filing issued after the market closed on Tuesday.

The biggest sales took place on Tuesday with Icahn selling 2.4 million shares at $341.44 for about $819 million. The Tuesday sale alone generated a profit of about $645 million. Icahn still holds 4.5 percent of Netflix, down from 9.4 percent in June -- the last time he publicly disclosed his holdings.

Icahn, whose Icahn Enterprises has assets of approximately $29 billion, said in the filing that "as a hardened veteran of seven bear markets I have learned that when you are lucky and/or smart enough to have made a total return of 457 percent in only 14 months it is time to take some of the chips off the table."

He added in the filing and a subsequent tweet: "I want to thank Reed Hastings, Ted Sarandos and the rest of the Netflix team for a job well done. And last but not least, I wish to thank Kevin Spacey."

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reply to post by jhn7537


Sell when people get greedy and buy when they get scared is what most of the people who make the most money on the stock market seem to do.
You just need enough money to make it worthwhile (and only "bet" as much as you can afford to lose). It's pretty simple. Overthinking it is where people get in trouble.

It could be a gamble but with the amount invested and gained it almost makes you wonder if He knew something more than just a gut instinct on the "bet."

reply to post by superman2012


I completely agree, you will see people overreact quite often instead of riding it out. I only wish I had the money, courage, and insight that Carl Icahn had... What's crazy is that this man is able to manipulate stock prices, legally, by just tweeting about companies... Its crazy that when you get so good, successful you have that influence on companies stock prices.

Positive
It could be a gamble but with the amount invested and gained it almost makes you wonder if He knew something more than just a gut instinct on the "bet."

I think it's very fair to assume that whenever someone makes a huge lump sum of money. Was it a gut instinct, was it insider trading or was it just a very intelligent man...

I equate this to baseball. When you see a guy hitting 50-60 homeruns in a season you automatically assume steroids, and not skill...

reply to post by jhn7537


In the realm of money perhaps he knows more than the average person. But how much does that really count? Many of you can beat him at chess. Many of you can code circles around him. Many of you can outfight him at any one of the martial arts. Many of you have a better command of the English, French, German, Japanese, whatever language than he does. And so on.

Besides, how much of a role did he really play in it all? Think of all the circumstances and things that must have happened to make it possible. In the end, let's not be impressed. There is always the possibility that he received insider information. Do you get impressed when I win the lottery? I think not.

socialist
reply to post by jhn7537

 

In the realm of money perhaps he knows more than the average person. But how much does that really count? Many of you can beat him at chess. Many of you can code circles around him. Many of you can outfight him at any one of the martial arts. Many of you have a better command of the English, French, German, Japanese, whatever language than he does. And so on.

Besides, how much of a role did he really play in it all? Think of all the circumstances and things that must have happened to make it possible. In the end, let's not be impressed. There is always the possibility that he received insider information. Do you get impressed when I win the lottery? I think not.

Hey, if you select all 6 numbers of the powerball correct i will be thoroughly impressed!!!

He's one of the best at what he does, just like Michael Jordan at basketball when he played, or any other person at the top of their industry. But you're right, he could have had insider knowledge. hard to say if this was an honest bet that paid off