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Carl Icahn cuts his Netflix stake in half

Tuesday, 22 Oct 2013 | 5:15 PM ET
Icahn now has 4.5% stake in Netflix
Tuesday, 22 Oct 2013 | 5:15 PM ET
The FM traders discuss Carl Icahn's decision to sell shares of Netflix. Dr. J says experienced traders "take money off the table" when they've got a big profit.

Investor Carl Icahn disclosed that he is cutting his Netflix stake to 4.5 percent from the 9.4 percent disclosed at the end of June.

"Sold a block of NFLX today," Icahn tweeted late Tuesday. "Wish to thank Reed Hastings, Ted Sarandos, NFLX team and last, but not least, Kevin Spacey," he said, referring to Spacey's starring role in the Netflix original series "House of Cards."


According to a filing with the U.S. Securities and Exchange Commission, Icahn actually began selling shares Oct. 10, though the biggest blocks were sold Tuesday.


Rough day for Netflix
Better-than-expected earnings from Netflix pushed shares higher, but shares fell on profit taking. Investors became worried because of CEO Hastings' concern for the overheated stock, reports CNBC's Julia Boorstin.

Icahn said in a press release he decided to get out since the stock had gone up 457 percent from his original investment.

(Read more: Netflix shares soar as outlook blows past forecasts)

Netflix shares fell 9 percent during regular trading Tuesday and then dipped another 1 percent in after-hours action. (What's the stock doing now?)

The filing came a day after Netflix delivered strong earnings, as the movie-rental service's investment in original content seems to be paying off.

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Netflix said it added more than a million subscribers during the quarter and that it plans to double its investment in original content next year.

(Read more: Traders debate Icahn's Netflix sale)

Netflix CEO Reed Hastings also commented that the company's stock is caught in some "investor-fueled euphoria."

—By CNBC.

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