Overview
- Pershing Square re-established a large Netflix position in 2026 that is valued at roughly $1 billion and represented about 4.8% of the fund's assets at the end of the second quarter.
- Ackman had sold a roughly $1.25 billion Netflix holding in early 2022 after the company introduced an ad-supported tier because he said the change made the business harder to predict.
- Ackman now frames his new purchase as a vote of confidence in the company's scale and its ability to monetize ads and expand into live programming to win viewers.
- Market reaction is mixed: Netflix shares remain well below their mid‑2025 peak, engagement reporting was cut from twice a year to once a year, and analysts have lowered ratings and price targets.
- Investors will be watching ad revenue growth, the emergence of breakout original hits, engagement trends, and Netflix's capital uses including buybacks, content spending and any future M&A moves.