Investor Bill Ackman returns to Netflix with six new bets

### Bill Ackman Returns to Netflix After Losing More Than $400 Million

Billionaire investor Bill Ackman is making a return to Netflix after suffering a loss of more than $400 million on the streaming company in 2022. His investment firm, Pershing Square, has disclosed a new 3.15 million-share position in Netflix as part of a major portfolio reshuffle. The stake represented approximately 4.9% of Pershing Square’s portfolio as of June 30. Ackman’s renewed investment comes four years after he exited Netflix following a sharp decline in the company’s subscriber numbers and stock price. Pershing Square originally invested more than $1 billion in Netflix in January 2022. The investment quickly turned sour after Netflix reported its first subscriber decline in years. The company’s shares plunged, prompting Ackman to sell the position only months after building it. Pershing Square ultimately recorded a loss of more than $400 million from the investment. Ackman now believes Netflix has undergone a significant transformation since that setback. Along with Pershing Square Chief Investment Officer Ryan Israel, he said the streaming company has effectively won the streaming wars. The investment firm expects Netflix to continue delivering double-digit revenue growth while expanding its profit margins. Pershing Square also believes content costs can increase more slowly than Netflix’s revenue, potentially improving the company’s profitability. The Netflix investment is part of a broader portfolio overhaul involving six new stock positions. Pershing Square has also taken new positions in Visa, Mastercard, S&P Global, Intercontinental Exchange and Alcon. The stakes in Alcon and Intercontinental Exchange were acquired after June 30, according to the firm’s disclosure. The latest moves represent one of Ackman’s most significant portfolio adjustments in several years. The investment strategy focuses on companies capable of generating strong and sustainable earnings growth over the long term. Ackman’s return to Netflix is particularly significant because of the painful outcome of his earlier investment. The renewed position suggests that Pershing Square believes Netflix’s business fundamentals are substantially stronger than they were in 2022. The firm points to Netflix’s massive subscriber base, continued revenue opportunities and improving margins as important factors behind the decision. Pershing Square is also evaluating companies beyond the technology sector as investors remain focused on the impact of artificial intelligence on businesses and markets. Microsoft continues to be the firm’s largest disclosed holding, accounting for 12.4% of its portfolio, followed by Uber at about 12% and Meta at roughly 9%. The Netflix investment demonstrates Ackman’s willingness to revisit companies after major investment losses when he believes their long-term prospects have changed. For Netflix, the renewed backing provides an important vote of confidence from one of Wall Street’s most closely followed investors. The move also highlights how rapidly changing business fundamentals can influence even highly experienced investors. Ackman’s latest bet will now be closely watched as Netflix continues to compete for global streaming audiences and deliver growth to shareholders.