On Netflix.

Apparently, Netflix has about 30 million paying subscribers in the U.S. (And another 7 million internationally). Accounting for about 35% of all downstream traffic during peak time within America.

12 months ago, they were worth $64.98 a share.

Today, they’re trading at an all time high of $348.03 accounting for a return of 497%.

Seeing as they’re currently in talks with several U.S. cable television providers to make the online video service available a sort of **app** set up on decoders, greatly expanding their horizon, it would be prime time to invest in them.

On the other hand, (and in large part why I wrote this) here is a table of their insider-trading activity since January.


There have been 1,205,453 shares sold and 0 shares purchased by insiders of Netflix this year, which is more scary than it is encouraging.

As much as I’m interested in buying into this particular quote, I’m more interested in why three high profile insiders, Jonathan Friedland (COO), Leslie Kilgore (Former CMO) and Reed Hastings (CEO) would have collectively (68.7%29.6% and 1.5% respectively) sold about 20,000 of their company’s shares in the last month alone.

I remember when Carl Icahn famously bought shy of 10% of Netflix stock whilst it still traded under $100, with a $320 M investment per the request of his son, Brett Icahn. Unsurprisingly, Carl wanted to sell his Netflix investment as well, right around the $200 mark, but chose to relent when Brett threatened to quit.

(His investment is now worth upward of about $1.9 B.)

We have a lot to learn from the release of their Q3 financial results (and the live talk) today, let’s see where that takes us.

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[1] Carl Icahn on Tuesday sold more than half of his Netflix stake (worth about $1 B) for a 457% profit.

[2] Netflix’s CEO Discusses Q3 2013 Results - Earnings Call Transcript.