Dallas, Texas 03/28/2014 (FINANCIALSTRENDS) – Netflix, Inc (NASDAQ:NFLX) stock price dipped 6.67% post news that Apple is in now talks with Comcast Corporation to provide its streaming digital-content for the Apple TV customers. While this seems to be a huge threat for Netflix, Inc (NASDAQ:NFLX), what also added to this mix was the statement that Carl Icahn’s made, regarding liquidating 50% of his position in Netflix, Inc (NASDAQ:NFLX). However, this statement might not have been the actual reason behind the dip in Netflix, Inc (NASDAQ:NFLX)’s stock price as he was referring to the October 2013 transaction, that had caused the immediate dip of 9% in the company’s stock price.
Icahn had cashed in & realized capital-gains of 457% on Netflix, Inc (NASDAQ:NFLX) stock when he had made that sale. Icahn had bought this stock at the average price of $58, approximately 14 months ago. That particular sale resulted in the biggest dip Netflix, Inc (NASDAQ:NFLX) had experienced over the last one year. The primary reason that caused Netflix, Inc (NASDAQ:NFLX) to plunge was the news that Apple is now looking to enter into the content-streaming space. Apple, is a consumer favorite, and will tentatively be partnering with Comcast to permit Apple TV users to now stream content that is delivered by the cable networking company on a priority bandwidth.
This would now give Apple the set-top box users access to much better streaming-speeds for all the digital content that they have now stored in the cloud, without actually clogging the networks. Netflix, Inc (NASDAQ:NFLX) has been in almost a continuous battle with the ISP’s over net neutrality. In a certain recent case, Verizon Communications had challenged net-neutrality guidelines that were given by the FCC. The court’s decision had gone against the FCC & in favor of the ISPs, allowing the ISP’s to charge the content providers based on the actual amount of bandwidth that has been consumed to service the needs.
