Four years ago, Pershing Square exited Netflix with a reported $400 million loss. Now, Bill Ackman has re-entered the stock, acquiring 3 million shares of the streaming giant.

This move is part of a major portfolio overhaul, with Netflix (NASDAQ: NFLX) joining Visa, Mastercard, eye care firm Alcon, exchange operator Intercontinental Exchange, and financial data provider S&P Global as six new positions. This is Pershing Square's most significant portfolio adjustment in years.

Where to begin

On Thursday, August 13, 2026, Pershing Square disclosed a new position of approximately 3 million shares of Netflix, representing about 4.9% of the fund's portfolio. Ackman revealed on the "Investment Committee" program that the purchases began in the second quarter, with the shares held across multiple funds, including the Pershing Square US Fund listed on the NYSE in April 2026. Reuters notes this is the billionaire investor's largest portfolio realignment in years, as Pershing Square typically holds no more than a dozen companies. Ackman stated he believes these companies are poised for strong earnings growth, which over the long term is the most important driver of investment value. The new positions, alongside existing holdings like Microsoft (established earlier in 2026), Meta, Amazon, Fannie Mae, and Freddie Mac, will be formally disclosed in the 13F filing on Friday.

Shift in sentiment from 2022 to 2026

In April 2022, Ackman sold his stake in Netflix, citing a loss of confidence in its prospects. Four years later, his view has completely reversed. The program host summarized Pershing Square's core argument: "Netflix has essentially won the streaming wars, with a subscriber base that vastly outpaces all competitors. This scale creates a positive feedback loop, allowing it to invest more in content than its rivals." Guest Malcolm added that the company's next phase focuses on monetization, suggesting Netflix is now shifting from chasing new subscribers to generating more revenue from its existing 300 million user base. The company's actions support this. In its July 16, 2026, earnings call, co-CEO Greg Peters stated that the gap in average revenue per user (ARM) between the ad-supported tier and standard plans represents untapped short-term revenue growth potential. The company projects ad revenue will nearly double this year to around $3 billion, and its board has approved a share buyback program of up to $27.1 billion.

Why just these two stocks?

Josh Brown provided the clearest interpretation: "This is classic Ackman: finding high-quality businesses with moats and strong brands that are facing temporary difficulties or market sentiment shifts. He waits patiently and eventually reaps the rewards." On valuation and growth, he noted: "Netflix trades at a forward P/E of just 20 times, with expected earnings growth of 42% next year. There are very few stocks in the S&P 500 that simultaneously offer 40% earnings growth and a 20x valuation. I can think of two: one is Uber (which Ackman also holds), and the other is Netflix." He added that the company's monetization levers include annual price increases over the past decade, the introduction of a lower-priced ad-supported tier, and a crackdown on password sharing.

Underlying realities

As of July 2026, the NYSE-listed Pershing Square US Fund is down 3.5% year to date, while the London-listed Pershing Square Holdings has fallen 9.2%. In contrast, the S&P 500 total return index is up 10%. This underperformance is the key context behind Ackman's largest portfolio reshuffle in years. After a failed $65 billion acquisition bid for Universal Music Group, which led to the sale of his $1.5 billion stake, Ackman is now positioning himself as a value investor rather than an activist.

Current stock price situation

Netflix shares closed at $78.24 on Thursday, up 5.43% for the day. The stock rose 3.3% in early trading before gaining further momentum in the afternoon. However, the longer-term trend is less optimistic. The stock has fallen 35.04% from its price of $120.44 on August 13, 2025, and is down 16.55% year to date from its 2025 close of $93.76. Analysts covering the stock have an average price target of $94.04, with 36 buy ratings, 15 hold ratings, and no sell ratings.

Key takeaways

Ackman has acknowledged that his 2022 investment in Netflix was poorly timed and a mistake. His current bullish thesis rests on the company's industry leadership and the potential to monetize its massive user base. The success of this bet will depend on two factors: how quickly the ad-supported tier can close the revenue gap with standard plans, and the extent to which the company executes its $27.1 billion share buyback program, especially given that the current stock price is well below its 52-week high of $126.71.