Key Takeaways Pershing Square has established a fresh 3.15 million-share position in Netflix, comprising 4.9% of its total holdings The hedge fund previously exited Netflix in 2022 with losse
In a notable turnaround, Bill Ackman’s Pershing Square has re-established a position in Netflix after a painful departure four years ago. The investment firm unveiled a 3.15 million-share stake in the streaming powerhouse in its semiannual disclosure filed Wednesday.
This strategic shift represents a complete about-face from 2022, when the hedge fund deployed more than $1 billion into Netflix before dumping the position just months later, absorbing losses north of $400 million. The hasty exit followed Netflix‘s announcement of subscriber losses for the first time in over a decade.
According to Pershing Square, the streaming landscape has fundamentally transformed. “Netflix has since effectively won the streaming wars,” the investment firm declared in its disclosure.
The fund anticipates Netflix will sustain double-digit revenue expansion in coming periods. Additionally, Pershing Square projects content expenditures will increase at a slower pace than revenues, creating margin expansion opportunities.
The hedge fund characterized Netflix’s present market valuation as “a substantial discount,” indicating a belief that shares trade below intrinsic value given the company’s competitive advantages.
Netflix stock has declined 20.85% year-to-date, settling at $74.21 Wednesday with a 0.78% daily decrease. After-hours trading showed shares advancing 1.32%.
The streaming platform wasn’t Pershing Square’s sole new investment. The fund simultaneously revealed positions in payment processors Visa and Mastercard, alongside S&P Global, Intercontinental Exchange, and eye care company Alcon.
Two positions—Alcon and Intercontinental Exchange—were established after June 30, indicating third-quarter acquisitions.
The portfolio’s core holdings have maintained their hierarchy. Microsoft retains the leading position with 1.52 million shares, representing 12.4% of total assets.
Uber maintains the runner-up spot with 7.63 million shares and a 12% portfolio weight. Meta Platforms occupies third place with 913,501 shares.
These disclosures arrive as the first since Pershing Square’s U.S.-listed entity commenced trading on the New York Stock Exchange in late April. From listing through August 11, the fund generated net returns of 0.6%.
Ackman hasn’t provided additional commentary beyond the fund’s official filing. The renewed Netflix investment signals confidence that the company’s recent momentum represents lasting strength overlooked by the broader market.
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