Bill Ackman buys $1B stake in Netflix

Bill Ackman's Pershing Square bought a new stake in Netflix worth about $1 billion in 2026. The move marks a return to the streaming company after the fund exited an earlier position at a significant loss.

In early 2022, Ackman invested about $1.25 billion in Netflix. He sold the entire holding just weeks later when the company announced plans to introduce an ad-supported tier. Ackman noted at the time that the shift made the business less predictable for his concentrated portfolio.

In an August letter to shareholders, Ackman stated that Netflix has effectively won the streaming wars. He pointed out that Netflix's scale now far exceeds its closest competitors. Earnings per share have compounded by 27% since the end of the first quarter of 2022, while free cash flow has reached roughly 90% of earnings.

Ackman expects Netflix to approach a 20% annualized growth rate in earnings per share, supported by expanding margins and share buybacks. Pershing Square rebuilt its position as the stock's valuation dropped back to levels last seen in 2022.