Popular investor and Omega Advisors CEO, Leon Cooperman, was recently stated that Netflix, Inc. (NASDAQ:NFLX) will most likely enter into an acquisition deal.
Cooperman was speaking at a CNBC interview on Wednesday where he stated that the content streaming giant will most likely be acquired in the future. In his statement, Cooperman said, “I think ultimately Netflix is going to work, but I think somebody buys the company at a nice premium. Netflix is an acquisition candidate for somebody.” Cooperman had Netflix stocks in his portfolio but he recently unloaded his stake in the firm for $34.1 million.
The Omega Advisors co-founder stated that he has acquired his Netflix stock between April and June this year. “Another idea came in, I didn’t want to raise my exposure so I sold, and went to something else,” said Cooperman as he explained his reasons for selling his stake in the firm.
The Hedge fund manager did not out rightly mention any names of companies that might be interested in the acquisition. Nevertheless, such an acquisition would be a great deal considering how well Netflix has been performing.
Recent quarterly analysis of Netflix performance reveals that growth in the international and domestic sales have slowed down even as the firm gears up to introduce more original content. This translates to one of the reasons Cooperman sold his stake. He believes that the growth window of the company is coming to a close and as a result, the shares should not be expected to hit record peaks.
Cooperman also believes that any firm interested in acquiring Netflix will consider an attractive premium though this is only likely to happen in the long term. Cooperman has earned himself a reputable place among investors. He recently issued a warning over Apple Inc. (NASDAQ:AAPL) stock claiming that the iPhone maker’s stock may depreciate over the long term.
In a different statement, Cooperman said, “So we’ve put our money elsewhere say Google, or Facebook, which we think has more visible growth.”
1 Chart Pattern Every Investor Should Know
This little-known pattern preceded moves of 578% in ARWR, 562% in LCI, 513% in ICPT, 439% in EGRX, 408% in ADDUS and more...
