Tomahawk, WI 01/27/2014 (BasicsMedia) – Netflix Inc. (NASDAQ:NFLX) reported a record surge as its shares increased 16% to close at $388.72 at New York yesterday. In the Standard & Poor’s 500 Index, the stock had reported the largest profit the previous year. The world’s largest subscription streaming service demonstrated remarkable customer growth which outperformer analysts’ estimates. The company is now planning to charge its new customers more for sharing accounts.

Carl Icahn versus Brett Icahn

In October, Carl Icahn had profited $800 million by sharing 2.99 million shares of the Los Gatos, California based company. He had sold off more than half of the stakes he held after the stock raised five times in value in 14 months. Despite the soaring profit the 77 year old billionaire pocketed, he lost a three month old wager with his son Brett over Netflix Inc. (NASDAQ:NFLX) stock.

Brett Icahn, 34 was not in consent with the father’s decision as he believed the stock was undervalued at $323. Both he, and the fund co-manager David Schechter were right with their estimate and the shares would certainly have brought in more profit, had the senior Icahn have held them through yesterday. After yesterday’s surge, the shares dropped to $386.08 today in New York, which calculates up to a 0.7% decline. The two had earlier in October, renewed their contract with Icahn Enterprises LP (NASDAQ:IEP).

Growth and threat

On Oct 22, senior Icahn had announced the sale of shares declaring that it was time to collect profits. Just then, son Brett Icahn and manager Schechter had put forward their strong disagreement saying Netflix still had growth potential. The bet highlights the disparity in opinions about the company’s competiveness and growth, increasing the threat on it that telephone and cable providers could push it to pay for the access to their Internet users.

CEO’s plans

Netflix Inc. (NASDAQ:NFLX)’s Chief Executive Officer, Reed Hastings is now making trials on new pricing schemes to increase revenue and profit. He is investing in growth such that he could keep his company ahead of rivals such as Inc (NASDAQ:AMZN) and Hulu LLC. An increase in price in Ireland paves way for the company to model the same in homeland without setting off customer rebel like the previous revolt which led it to lose customers in 2011.

Netflix Inc. (NASDAQ:NFLX)’s website shows they are forecasting as many as 2.25 million new domestic subscribers this quarter. They are predicting $48 million profit in the first quarter, which would mean 78 cents per share. Clearly, the company’s forecast exceed analysts’ estimates which target 75 cents per share.

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