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The Last Time Bill Ackman Bought Netflix He Lost $400 Million. Here's Why He's Back In For 3 Million Shares
24/7 Wall St. • • business
Key Points:
- Bill Ackman’s Pershing Square has re-entered Netflix with a new position of about 3 million shares, representing roughly 4.9% of its portfolio, after exiting in 2022 at a significant loss due to a subscriber miss.
- This Netflix investment is part of a major portfolio overhaul including new stakes in Visa, Mastercard, Alcon, Intercontinental Exchange, and S&P Global, reflecting Ackman’s belief in strong earnings growth driving long-term value.
- The investment thesis has shifted from skepticism in 2022 to confidence in Netflix’s dominance in streaming and its monetization strategy, particularly through ad-supported tiers and price increases.
- Despite Netflix shares rising over 5% on the announcement day, the stock is still down over 35% in the past year, with analysts generally positive but cautious; Pershing Square’s overall 2026 performance trails the S&P 500.
- Ackman’s renewed Netflix bet hinges on successful monetization of its large subscriber base and effective use of the company’s $27.1 billion buyback capacity, marking a strategic pivot from his prior exit.
