Bill Ackman, through his firm Pershing Square Capital Management, has re-entered a position in Netflix, a company he previously sold out of in 2022 after a subscriber decline. In its latest semiannual report, Pershing Square highlighted that Netflix has emerged from intense competition in the streaming industry with a leading market position and improved profit margins.
The firm noted that Netflix's subscriber base has grown to over 325 million, significantly outpacing competitors like Disney+ and HBO Max. This scale allows Netflix to invest heavily in content while distributing costs more effectively.
Ackman's investment comes after a steep decline in Netflix's stock, which has fallen about 50% from its June 2025 high of $134, reducing its valuation to approximately 21 times forward earnings.
Pershing Square believes that Netflix's current valuation does not reflect its strong growth prospects, projecting revenue growth at a double-digit rate and earnings growth close to 20% annually, supported by aggressive share repurchases