Icahn sells Netflix shares as CEO warns of euph…

SAN FRANCISCO -- Billionaire activist investor Carl Icahn sold some of his firm's stake in Netflix after CEO Reed Hastings warned that "euphoria" may be partly behind a huge run-up in shares of the streaming video company.

"Sold block of NFLX today. Wish to thank Reed Hastings, Ted Sarandos, NFLX team, and last but not least Kevin Spacey," Icahn wrote on Twitter late Tuesday.

Netflix shares dropped more than 9% on Tuesday and slid a further 2.2% to $315.44 in after-hours trading. The stock is up almost 400% in the past year.

Netflix reported impressive quarterly results late Monday, showing that the company's strategy of developing original TV shows, such as House of Cards starring actor Kevin Spacey, is attracting lots of new subscribers.

However, CEO Hastings wrote a letter to shareholders warning them about the surge in Netflix shares.

"We had solid results compounded by momentum-investor-fueled euphoria," the letter said. "Some of the euphoria today feels like 2003."

In 2003, soon after Netflix went public, its shares soared from below $5 to more than $27.

Icahn still owns 4.5% of Netflix outstanding shares. But that is down from almost 10% in late 2012.

Icahn sold Netflix shares between Oct 10 and Oct 22 at prices well above $300. A year ago, the stock was trading near $60.