Ackman Bets $1 Billion on Netflix Redemption After $400 Million 2022 Loss

Billionaire investor Bill Ackman's Pershing Square has re-entered Netflix (NFLX) with a new $1 billion stake, representing roughly 5% of the fund's portfolio. The move comes years after Ackman famously suffered a $400 million loss on the stock in 2022 following a sharp subscriber contraction. Ackman is now buying into renewed weakness, as Netflix shares have fallen over 40% over the past year amid broader streaming growth questions. The core investment thesis hinges on Netflix's expanding advertising business, which management forecasts will reach $3 billion in revenue in 2026, up from $1.5 billion in 2025. The ad tier generated over 60% of first-quarter sign-ups in relevant markets, supported by a 70% annual increase in advertisers. However, Wall Street sentiment remains divided. Wells Fargo maintained an Underweight rating on the stock, pointing to a deceleration in viewing hours to just 2% growth in early 2026 and rising content expenditure of 10%, highlighting persistent engagement concerns.