Bill Ackman's Pershing Square Took a New Stake in Netflix in 2026, Years After a Money-Losing Bet on the Stock. Why He Says This Time Is Different.

Bill Ackman's Pershing Square has established a new position in Netflix (NFLX) valued at approximately $1 billion, revisiting an investment he previously exited in 2022. Ackman originally purchased a $1.25 billion stake in early 2022 but liquidated the position at a loss shortly after the company announced plans for an ad-supported subscription tier, citing reduced predictability in its business model. Ackman stated in an August letter to shareholders that Netflix has 'effectively won the streaming wars.' He emphasized that the company's long-term competitive advantages, global content scale, and push into advertising and live programming have driven sustained subscriber growth. Furthermore, Netflix's financial discipline has led to significant cash generation, with free cash flow rising to roughly 90% of earnings alongside ongoing share repurchases. With earnings per share compounding at 27% annualized since early 2022 and valuation multiples retreating toward previous attractive entry points, Pershing Square re-entered the stock, expressing confidence in Netflix's ability to maintain near-20% annualized EPS growth.