Eddie Lampert jumps on the Netflix bandwagon

Now it is Eddie Lampert's turn to jump on Netflix for fun, action and profits.

Eddie, via RBS Partners, bought 704, 381 shares of Netflix (NASDAQ:NFLX) worth $38, 346,501.

Corporate Raider Carl Icahn has put Netflix in play with his nearly 10% stake in the company. Netflix implemented a “poison pill plan” against Mr. Icahn.

"There is a very good argument that, at the right premium, somebody should buy Netflix." -- Carl Icahn

We will watch, with some interest, how Eddie Lampert, Carl Icahn and Netflix CEO Reed Hastings battle it out.

Billionaires continue to buy Netflix

Betting on a continued turnaround at Netflix (NASDAQ:NFLX), billionaire investors such as Julian Robertson and Steven Cohen continue to build positions in the stock according to SEC reported data.

7/24 update ---

Businessweek article-Netflix's 2Q numbers disappoints, stock tumbles

The Starbucks and Netflix price increases

Starbucks, with its stock currently selling at an all-time high at $46 per share (NASDAQ:SBUX) has decided to increase java prices in select markets (the Northeast).

Howard Schultz, chairman and CEO of Starbucks [net worth $1.1 billion], has done a remarkable job with the turnaround efforts of the company over the past 5 years.

One online poll asked: Will Starbucks' price hike change your coffee-drinking habit? (32% answered:) I've had enough of these incremental price hikes everywhere I look; I'm drawing the line and switching to a cheaper brew. If true, Starbucks is conducting an interesting price-elasticity market test.

The economic question of the day then becomes: why the lack of uproar over the Starbucks price increase, compared with the Netflix price increase? Sure, we are trying to compare coffee with movies. A produce with a a service. But it is an interesting question.


Our answer to this question includes: politics, target market demographics, and public relations power of the individual firms.


Enjoy your coffee today!