Popular media streaming service Netflix, Inc. (NASDAQ: NFLX) has recently been trading at a much lower rate over the last couple of days than earlier in June, leading many analysts to be skeptical about its investment potential. The stock dropped 1.9%, with many analysts believing that the fall in the price may have something to do with the social media behavior of one of the company’s more high-profile investors, Carl Icahn.
Carl Icahn recently moved to sell his stake in Netflix and shared this information with his followers on Twitter. The tweet, dated June 24th, made mention of the fact that Icahn and his investment firm had finished selling off the last of their Netflix stock, and that competitor Apple presented – to his mind – similar opportunities for investment as Netflix had when he originally bought into it. Some analysts believe that this tweet may have deterred potential investors due to Icahn’s conviction that service competitor Apple (AAPL) is currently offering more than Netflix in the current market. Certainly, with Apple’s recent unveiling of its streaming service and the subsequent PR battle with popular artist Taylor Swift, it could be argued that Apple is becoming a much stronger online contender, moving away with its more traditional IT battle with competitor Microsoft (MSFT).
Many other analysts disagree, however, stating that Icahn’s words are not to be taken at face value. These analysts speculate that the stock is only going to become more valuable as Netflix expands its overseas services. However, many concede that Netflix’s rise is a limited pot of gold, with competitors like Amazon (AMZN) and Hulu ($HULU) may soon begin to threaten Netflix’s position at the top of the streaming ladder. Similarly, many big investors such as Icahn and Citigroup have started to lose interest in the streaming giant, which could potentially destabilize the stock in upcoming years.