Netflix (NFLX) Stock Sharply Lower After Icahn Sale
Shares of Netflix Inc. (NFLX) were down -32.47 or -9.15 percent to close at $322.52 on Tuesday. The stock had a roller coaster day that saw Netflix stock make a high of $389.16 per share intraday before selling off sharply after news that investor Carl Icahn had sold his stake in the company. In pre-market trading on Wednesday, Netflix stock was down another -13.67 or -4.24%, trading at $308.85 per share.
The ride began on Monday afternoon after Netflix announced third quarter earnings had quadrupled after gaining another 1.3 million U.S. subscribers during the quarter. The news on earnings sent Netflix stock soaring on Monday, up +38.01 or almost 11 percent to $393 per share in afterhours trading. Daily Chart
Los Gatos, California based Netflix Inc. is an Internet subscription service offering subscribers unlimited streaming television shows and movies that can be watched on television sets, computers or on mobile devices. The company currently operates in North and South America, the United Kingdom, Ireland, the Caribbean, Denmark, Sweden, Finland, Norway, the Netherlands, and Iceland. The volatility in Netflix stock began on Monday afternoon. Netflix announced third-quarter earnings of 52 cents a share versus the 49 cents per share analysts polled by Thomson Reuters were expecting. Sales came in at $1.1 billion, as was widely expected. In addition, the companyâ s guidance for the fourth quarter also beat analyst expectations of 46 cents. Netflix expects to see earnings in the 47 cents â " 73 cents per share in the fourth quarter. The company announced it had ended September with 31.1 million U.S. subscribers, beating cable competitor HBOâ s pay TV channel, which has an estimated 29 million subscribers in the United States. Nevertheless, HBO, which is owned by Time Warner, continues leading globally with over 114 million subscribers, while Netflix has over 40 million subscribers worldwide. In the letter to shareholders included with the earnings release, Netflix CEO Reed Hastings wrote, â
Published on Oct 23, 2013
By Jay Hawk