Carl Icahn On Getting Out Of Netflix
Billionaire activist investor and chairman of Icahn Enterprises LP (NASDAQ: IEP) Carl Icahn tweeted on Wednesday that he has sold off his entire stake in Netflix, Inc. (NASDAQ: NFLX) and compared it with Apple Inc. (NASDAQ: AAPL).
The tweet reads, "Sold last of our $NFLX today. Believe $AAPL currently represents same opportunity we stated NFLX offered several years ago."
Icahn was on CNBC to discuss the tweet.
Still A Great Company
"There's never a right time I guess, but Netflix is still a great company. I think Reed Hastings has done a great job. But from our point of view, I think the market is sort of overheated."
Icahn continued, " I also think that Netflix – and I am not in any way criticizing Netflix – but when we did it, it was pretty much of a no-brainer. It was very hard to compete."
Apple Has Hundreds Of Points Left
He went on, "It was sort of where Apple is today. I think Apple has hundreds of points left in it, perhaps. I am not going to call exactly where it could go. But, Apple is a great company with great barriers to competition."
Competition Is Easier
"Netflix years ago was tremendously undervalued because it was very hard to compete with them. I think, today the competition is somewhat easier, if you see the secular change going on where they are building service, where they can go over-the-top, and there's going to be cable competition – cable may change dramatically, and that is not to say that Netflix is not a great company still," Icahn concluded.
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