Billionaire investor Bill Ackman is returning to Netflix Inc. (NASDAQ:NFLX), taking a 3.15 million-share position four years after a $400 million loss. The new position represents 4.9% of Pershing Square’s portfolio and reflects Ackman’s renewed confidence that Netflix has emerged victorious in the streaming wars.
A Surprising Reversal
In early 2022, Pershing Square invested over $1 billion in Netflix, only to exit months later with a loss exceeding $400 million when the company reported its first subscriber decline in decades. However, Ackman has shifted his stance.
According to Pershing Square’s interim financial report for the six months ending June 30, 2026, the firm re-entered the company with renewed conviction.
“Netflix has since effectively won the streaming wars,” Pershing Square stated. The hedge fund anticipates financial momentum, adding, “We expect Netflix to compound revenue at a double-digit growth rate, with content costs growing more slowly than revenue driving continued margin expansion.”
Six New Major Bets
While the Netflix acquisition highlights the 2026 reshuffle, it was just one of six major additions.
The firm disclosed new stakes in Visa Inc. (NYSE:V), Mastercard Inc. (NYSE:MA), S&P Global Inc. (NYSE:SPGI), Intercontinental Exchange Inc. (NYSE:ICE), and Alcon AG (NYSE:ALC).
Despite these new acquisitions, Pershing Square’s top two holdings remain unchanged. Microsoft Corp. (NASDAQ:MSFT) remains the fund’s largest position, with 1.52 million shares, accounting for 12.4% of the portfolio.
Uber Technologies Inc. (NASDAQ:UBER) follows as the second-largest holding, representing 12% of the portfolio with 7.63 million shares. Meta Platforms Inc. (NASDAQ:META) sits in third with 913,501 shares.
A Valuation Discount
Pershing Square capitalized on what it perceived to be a market dislocation. The firm noted that Netflix’s “current valuation multiple represents a substantial discount,” allowing the fund to acquire a premium business at an attractive price.
How Has NFLX Performed In 2026?
NFLX shares fell 20.85% year-to-date, declined 39.43% over the last year, and slipped 2.18% over the last six months. It closed 0.78% lower at $74.21 per share on Wednesday, and it was 1.32% higher in overnight trading.
Benzinga’s Edge Stock Rankings indicate that NFLX maintains a strong price trend in the short, medium, and long terms, with a poor value score.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: marekfromrzeszow on Shutterstock.com
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