Ackman Repurchases Netflix Stock, Declares Streaming Wars Won

Bill Ackman’s Pershing Square Capital Management has disclosed a new equity stake in Netflix, according to the firm’s semiannual report. The investment marks a high-profile return to a streaming giant that Pershing abruptly exited four years ago after a sharp subscriber drop.

Why Pershing Square Re-entered Netflix After a 2022 Exit

According to its semiannual report, Pershing Square acquired a position in Netflix after following the company closely since a brief ownership period in 2022. Ackman originally built a major stake in early 2022, only to sell the entire holding about three months later. That sale followed Netflix reporting its first subscriber decline in more than a decade, which caused shares to plunge. At the time, Ackman stated that shifts in the company’s business model made future prospects too difficult to predict with sufficient certainty.

Now, the investment thesis rests on a much stronger market posture. Pershing stated in the report that Netflix has effectively won the streaming wars. The platform claims more than 325 million subscribers, giving it a user base nearly twice the combined total of Disney+ and HBO Max.

Valuation Reset and Financial Metrics Driving the Buy

The decision to repurchase shares was heavily influenced by a steep valuation reset. Pershing pointed out that Netflix shares fell roughly 50% from a June 2025 high of $134. That drop compressed the stock’s valuation to about 21 times forward earnings, down from more than 40 times previously.

According to Pershing’s projections, Netflix revenue is expected to compound at a double-digit rate. Because content costs are projected to rise at a slower pace, the firm anticipates earnings growth close to 20% annually. The combination of scale, expanding profit margins, and aggressive share repurchases forms the core of the bullish outlook.

Market Reaction and Subscriber Scale Advantages

Netflix shares jumped nearly 4% on a Thursday following the public disclosure of the position.

Pershing’s analysis emphasizes that raw scale provides a structural financial advantage. With over 325 million users, Netflix can spread heavy programming and content investments across a massive global audience in a way smaller rivals struggle to match. The firm noted that the company has successfully emerged from an expensive industry-wide battle for subscribers, securing both a leading market share and stronger profit margins.

Financial Highlights of the New Stake

• Valuation Multiple: Dropped to roughly 21x forward earnings from over 40x.
• Share Price Correction: Down approximately 50% from its June 2025 peak of $134.
• Projected Earnings Growth: Expected to approach 20% annually.
• Subscriber Count: Exceeds 325 million globally.

Frequently Asked Questions

When did Bill Ackman first buy and sell Netflix?

Bill Ackman initially purchased a large stake in Netflix in early 2022 but sold the entire position about three months later following the company’s first subscriber decline in over a decade.

Why did Pershing Square buy Netflix shares again?

According to Pershing Square, Netflix has effectively won the streaming wars, achieved dominant scale with over 325 million subscribers, and seen its valuation drop by roughly 50% from its June 2025 high.

How did the market react to the filing?

Netflix shares jumped nearly 4% on Thursday following the disclosure of Pershing Square’s new position in its semiannual report.