Bill Ackman's Pershing Square takes a striking stake in Netflix once again

Billionaire Bill Ackman’s hedge fund, Pershing Square Capital Management, has re-established a new position in Netflix Inc. (NFLX), acquiring roughly 3 million to 3.1 million shares (approx. 4.9% of its portfolio or around 13.1 million shares depending on filings)

Some Details

• The Return: This marks Ackman's return to the stock after famously selling an entire $1.25 billion stake (around 31 million shares) at a roughly $400 million loss back in early 2022 following a surprise subscriber drop.
• Investment Rationale: Ackman and Chief Investment Officer Ryan Israel noted that Netflix has "effectively won the streaming wars", pointing to a dominant subscriber base exceeding 325 million (nearly double Disney+ and HBO Max combined), strong free cash flow, and growth from password-sharing crackdowns and ad-supported subscription tiers.
• Valuation: Pershing Square re-entered the stock after a pullback in valuation multiples from past highs, viewing the business model as an industry-standard titan with durable competitive advantages