Soros pull out of NFLX because he saw NFLX stock will eventually will be at 50 because there will be more competitors come in the streaming movie business. I see the same thing and NFLX will be down to 50 in one day. Look at DELL I remember its stock was so hot in the 1990. It moved like NFLX today and now it at $13 and having problems because it has a lot of competitors now. SONY was the same problem.
I daytraded Dell years ago when it was in the 30's and higher. It was obvious their stock would collapse eventually since there was no margin in a sector where two high school graduates could slap together components and sell them. Compaq had already proven that.
The same was true of Yahoo at the time. Others had demonstrated that a porthole wasn't worth much without a revenue base.
Netflix is more intriguing to me. They are very aggressive.
You are 100% right that it doesn't mean anything. Soros also liquidated Gold and bought JCP. If anything it means he is losing his mind. Long HLF (terrible company with the exception of Icahn squeeze), sold GLD after it got slammed, and bought dead money JCP.
I think the real concern is when all of Wall Street falls out of love with NFLX, AMZN, LNKD, TSLA, CMG, and many many more. The result will be like AAPL from $700+ to slightly under $400. I would not invest my short money based on the actions of one person liquidating a position they have huge gains on. I would get out of a short position if a large investor got into a position I was short on. I was long Apple until about two weeks ago, but had I been short when Icahn sent out his tweet I would have covered.
In the end Wall Street will fall out of love with NFLX for any number of reasons (competition, debt, missing expectations, lower guidance, higher content costs, tired of Hastings games, etc.) but none of us know when that is. I will keep shorting the rips and covering on days like today until I see this thing getting punished the way it should.
Soros isn't a big deal; Icahn is. Where do you think Icahn found an extra billion to put into Apple this month? August was when his NFLX holdings went from short to long term cap gains. He's making big plays with Dell, Apple, HLF. Think he's still holding a ton of NFLX after being up 300%?
Every time Icahn spoke about Netflix he made himself look like a fool. He knew nothing, but made a good trade. Good for him. I don't care what he does so long as he doesn't try to be an active investor and f everything up like he usually does.
Icahn isn't a big deal either. He wanted Netflix to put itself up for sale when it was $75. So he would have been happy to get $100. Good thing Hastings who is a big deal settled him down.
Agreed that it is a non-event as his holdings don't amount to much relatively speaking...the real story is how NFLX will fall faster than most when the markets correct post irrational exuberance...they ALWAYS do
It is a big deal - when you start taking money off the table it is because you want to lock in gains believing that the top is approaching.
If Soros thins so I bet you a lot of his kind think the same.
Icahn taking profits wouldn't surprise me, but the little Soros sale is inconsequential. His Netflix holding is tiny. Soros' pilot probably over-revved the G550 and they had to rake a little on 20 stocks to overhaul the starboard engine. My Cessna is cheaper - also seriously slower.