Billionaire Investor Carl Icahn Exits Netflix, Inc. (NASDAQ:NFLX), Is It Time To Be Cautious?

The Netflix company logo is seen at Netflix headquarters in Los Gatos, CA on Wednesday, April 13, 2011. AFP PHOTO / Ryan Anson

Dallas, Texas 06/25/2015 (Financialstrend) – Billionaire investor Carl Icahn has exited his position in Netflix, Inc. (NASDAQ:NFLX) after banking more than $2 billion in a span of three years. The investor took to twitter to make the announcement. The exit comes after the announcement of the company to carry out a stock split.

Icahn’s exit raises more questions than answers especially on whether it may be high time for other investors to follow suit and relinquish their position. Icahn has already stated that the streaming giant could come under immense pressure in terms of competition, as other players continue to invest heavily on the streaming business.

Icahn’s biggest success story

Icahn’s initial investment in Netflix, Inc. (NASDAQ:NFLX) was worth $321 million but over a span of one year, his stakes had more than quadrupled. Despite being advised by his son to keep hold of his stakes, Icahn opted to sell half of his stakes in 2013.

Netflix, Inc. (NASDAQ:NFLX) is arguably Icahn’s most successful story having bought the stock when it was trading at $58 a share. The stock has soared to more than $670 a share prompting a stock split to make it available to retail investors. The activist investor could have walked away with $3.8 billion this time around had he held on to his initial stakes that were worth $321 million in 2012.

Apple Is Icahn’s Next Play

Apple Inc. (NASDAQ:AAPL) is now Icahn’s big play that he maintains has a long way to go on the upside. He currently owns 53 million shares of the iPhone maker valued at $6.6 billion, which also act as his biggest investment in terms of market value.

Separately, Icahn continues to raise concern about the current low-interest environment that he believes has flooded the market with cheap money creating overvalued stocks. For more than a year, the activist investor has been calling the Federal Reserve to raise interest rates to prevent a potential bubble from bursting. He has already termed the high yields bonds market a potential trouble spot.

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