Shares of Netflix (NAS: NFLX) are up 10% since activist investor Carl Icahn announced that he had taken a 9.98% stake in the company. Should you sell this rally? Buy more? Despite fresh evidence that Netflix is handling orders of magnitude more traffic than competitors Amazon.com (NAS: AMZN) and Hulu -- suggesting precisely the sort of "dominant market position" Icahn referred to in explaining why he bought -- history suggests a wait-and-see approach could be more profitable. Find out more in the following video.
While there's undeniable value in the Netflix franchise, it's too early to tell whether its global ambitions will pay off at the level CEO Reed Hastings wants or expects. That's why we're tracking the business so closely. In a just-released premium research report, we look not only at his strategy, but also the risks and long-term opportunities for the company. We're also offering a full year of updates as key news hits, so make sure to click here and claim a copy today.
The article Netflix: Should You Sell the Icahn Rally? originally appeared on Fool.com.Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of, and a long-term call options position in, Netflix at the time of publication. Check out Tim's web home, portfolio holdings and Foolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader. The Motley Fool owns shares of Amazon.com and Netflix. Motley Fool newsletter services have recommended buying shares of Amazon.com and Netflix. Motley Fool newsletter services have recommended creating a bear put ladder position in Netflix. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.