Ackman Re-Enters Netflix After 2022 Loss, Sees Strong Growth Prospects

Billionaire investor Bill Ackman has re-entered Netflix after losing $400 million in 2022. He bought about 3 million shares, representing roughly 4.9% of Pershing Square's portfolio.

Pershing Square's new position is part of a broader portfolio overhaul, with six new holdings announced by Ackman. These include Visa, Mastercard, Alcon, Intercontinental Exchange, and S&P Global, among others.

Ackman said he believes these companies' earnings are poised for strong growth, which he views as the greatest driver of investment value over time. In contrast to his 2022 exit from Netflix, Ackman now sees the company's dominance in the streaming market and its ability to monetize its huge installed base as key drivers.

The stock has been down 16.55% year-to-date, but analysts are optimistic about its prospects, with a mean target of $94.04 and 36 buy ratings.