Ackman's Pershing Square Re-Enters Netflix After $400M Loss
Billionaire investor Bill Ackman's Pershing Square has re-entered Netflix Inc. (NASDAQ:NFLX) four years after a $400 million loss. The new position represents 3.15 million shares, which is approximately 4.9% of the firm's portfolio.
Pershing Square initially invested over $1 billion in Netflix in early 2022 but exited months later with significant losses due to subscriber decline for the first time in decades.
However, Ackman has shifted his stance and believes that Netflix has effectively won the streaming wars. The firm anticipates financial momentum, expecting Netflix to compound revenue at a double-digit growth rate, with content costs growing more slowly than revenue driving continued margin expansion.
Pershing Square's re-entry into Netflix is part of six new major additions, including stakes in Visa Inc., Mastercard Inc., S&P Global Inc., Intercontinental Exchange Inc., and Alcon AG. Despite these new acquisitions, Microsoft Corp. remains the fund's largest position, followed by Uber Technologies Inc.