The video streaming company's shares fell early in Wednesday's session, amid speculation that Icahn could be selling his stake.
In a telephone interview, Icahn told CNBC that he has "not sold one share of Netflix since buying it." Icahn said he generally does not comment on rumors, but he believes there may be investors spreading such rumors and trading on the misinformation.
Such rumors have now circulated several times over the past few months, he said.
Icahn Associates is the third largest shareholder of Netflix with roughly 5.5 million shares, or about 9.9 percent of the outstanding shares as of Dec. 31, 2012. Icahn continues to believe that the company will add subscribers at a more rapid rate than Wall Street consensus estimates.
Separately, Mark Newton, Chief Technical Analyst at Greywolf Execution Partners, says the stock's breakdown below $175, which has held since early February, is technically important. He said the slide should lead to additional weakness in the days ahead, with key targets down near $142.
The stock is in the red in afternoon trading, though well off the lows of the session since CNBC reported Icahn's comment on "Squawk on the Street" this morning.
Netflix so far has not commented on the activity in its stock.