Bill Ackman is betting on Netflix again, returning to a stock he abruptly exited about four years ago after a sharp decline in the streaming giant’s shares. Ackman’s Pershing Square Capital Management disclosed a new position in Netflix in its semiannual report, saying the dominant streaming platform has emerged from the industry’s costly battle for subscribers with a leading market position, stronger profit margins and a valuation that has become increasingly attractive after a steep sell-off. “We acquired a position in Netflix, a business we briefly owned in 2022 and have followed closely ever since,” Pershing Square said in the report. Netflix shares jumped nearly 4% on Thursday following the disclosure. The investment marks a notable return for Ackman, who built a large Netflix position in early 2022 only to sell the entire stake about three months later after the company reported its first subscriber decline in more than a decade. Netflix shares plunged on the news, and Ackman said at the time that changes to the company’s business model made it too difficult to predict its future prospects with sufficient certainty. Pershing now said Netflix has “effectively won the streaming wars,” pointing to its more than 325 million subscribers, nearly twice the combined base of Disney+ and HBO Max. Pershing said that scale allows Netflix to spend heavily on programming while spreading those costs across a much larger audience than its rivals. Ackman is buying after a much steeper reset in valuation. Netflix shares have fallen roughly 50% from their June 2025 high of $134, cutting the stock’s valuation to about 21 times forward earnings from more than 40 times, Pershing said. NFLX 1Y mountain Netflix one year The bullish thesis is ultimately built around a combination of growth, expanding profit margins and aggressive share repurchases. Pershing expects Netflix revenue to compound at a double-digit rate, while content costs rise more slowly, helping earnings to grow close to 20% annually. “We believe the company’s current valuation multiple represents a substantial discount for a business with such a strong growth profile and dominant market position,” Pershing said.
Ackman buys Netflix again, four years later; says it won streaming wars
