Bill Ackman and Pershing Square take new stake in Netflix

Billionaire investor Bill Ackman and his hedge fund, Pershing Square Capital Management, have disclosed a significant new stake in Netflix. Following the IPO of Pershing Square USA, Ltd., Ackman has allocated capital toward several high-quality, cash-flow-generating companies, including Netflix, Visa, and Microsoft.

Pershing Square acquired approximately 3.15 million shares of Netflix, representing 4.9% of its total portfolio. This move marks a notable reversal for Ackman, who previously exited a Netflix position in 2022 at a substantial loss. In shareholder communications, Pershing Square asserted that ‘Netflix has since effectively won the streaming wars,’ citing expectations for sustained revenue growth and expanding profit margins.

While Netflix shares have faced recent volatility and selling pressure, the company has seen growth in its international markets and momentum in its ad-supported subscription tier. Other institutional investors have also made various adjustments to their Netflix holdings during the second and third quarters.