Shares of Netflix (NASDAQ:NFLX) rocketed 17.13 percent before being halted at about 3:12 pm on Wednesday afternoon. The surge comes after Carl Icahn files a 13D with the Securities and Exchange Commission revealing that he purchased a 9.98 percent stake in the company.
The report reads that “The Reporting Persons acquired the Shares with the belief that the Shares were undervalued due to the Issuer’s dominant market position and international growth prospects.”
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Netflix got a boost on Friday on speculation that Microsoft (NASDAQ:MSFT) might be interested in buying the company, but those reports turned out to be false.
The filing continues, “The Reporting Persons believe Netflix may hold significant strategic value for a variety of significantly larger companies that are engaging in more direct competition with one another due to the evolution of the internet, mobile, and traditional industry.”
All this comes after Netflix posted an 88 percent drop in third-quarter net income and lowered its expectations for subscriber growth.
Shares of Netflix are now up over 42 percent for the month.