Bill Ackman is back in Netflix. In April 2022, Pershing Square dumped its stake at a reported loss of about $400 million after a subscriber miss cratered the shares. On Thursday, Aug. 13, 2026, Pershing Square disclosed a new position of about 3 million shares in Netflix (NASDAQ:NFLX | NFLX Price Prediction), representing roughly 4.9% of the firm’s portfolio. Ackman told CNBC’s Investment Committee that shares were purchased starting in the second quarter and would be held in his funds, including Pershing Square USA, which listed on the NYSE in April 2026.
What He Actually Bought
The Netflix trade is part of a broader repositioning. Per Reuters, Ackman unveiled six new holdings at once: Netflix, Visa, Mastercard, eye care firm Alcon, exchange operator Intercontinental Exchange, and financial data provider S&P Global. Reuters called it “the billionaire investor’s biggest portfolio overhaul in years,”, noting Pershing traditionally owns no more than a dozen companies. Ackman said he believes those companies’ earnings are poised for strong growth, which he views as the greatest driver of investment value over time. Additional Reuters reporting notes Pershing’s book also includes Microsoft (added earlier in 2026), Meta Platforms, Amazon.com, Fannie Mae and Freddie Mac. New names would show up in 13F filings on Friday.
The 2022 Exit vs. the 2026 Thesis
In April 2022, Ackman said he had lost confidence in Netflix’s prospects and sold. Four years later, the pitch flipped. On air, the host summarized Pershing’s stated reasoning: “Netflix has since effectively won the streaming wars. Its subscriber base now exceeds any competitors by a wide margin, and that scale is self-reinforcing, and it can outspend rivals on content.” Panelist Malcolm framed the next chapter as monetization: “I think that they’re probably figuring out ways to monetize the 300 million subscribers they’ve already gotten instead of chasing too many additional ones.” Netflix has leaned into that playbook. On the July 16, 2026 earnings call, co-CEO Greg Peters described the gap between the ad tier’s ARM and the standard tier’s ARM as “essentially near-term under-realized revenue growth.” Advertising revenue is guided to roughly double to ~$3.00 billion this year, and the board has $27.1 billion in buyback capacity, per the Q2 2026 8-K.
The Bull Case
Josh Brown made the loudest version of the case. “This is classic Bill Ackman. He finds unbelievable businesses with a moat with a great brand that stumble upon tough times or a sentiment shift on the street. And he’s patient and he waits and he wins.” On valuation and growth, Josh said: “This is a stock trading at 20 times forward earnings. Expected to have 42% earnings growth in the next year. How many stocks can you find in the S&P 500 that could grow earnings 40% and trade at a 20 multiple. I could think of two. Uber is one which Ackman also owns. And Netflix.” On monetization levers, he added: “They’ve raised prices almost every year over the last ten years. And they’ve added this ad subscription tier for people that said no they didn’t want to pay higher. They got rid of password sharing.”
The Complication
Through July 2026, Pershing Square USA was down 3.5% for the year and London-listed Pershing Square Holdings was down 9.2%, compared with a 10% gain for the S&P 500 total return index. A manager trailing the index making his biggest overhaul in years is the actual story behind Thursday’s headline. Ackman also exited an estimated $1.5 billion position in Universal Music Group after the company rejected his $65 billion takeover bid, and now describes himself as a value investor rather than an activist.
Where the Stock Stands
Netflix closed Thursday at $78.24, up 5.43% on the day. Reuters noted the stock rose 3.3% in Thursday morning trading before extending gains into the close. Zoom out and the chart is less flattering: NFLX is down 35.04% over the past year, from $120.44 on Aug. 13, 2025, and down 16.55% year to date, from $93.76 at the end of 2025. Analysts covering the name carry a mean target of $94.04, with 36 buy ratings, 15 holds and no sells.
The Kicker
Ackman was early and wrong on Netflix in 2022 by his own account. The pitch this time centers on dominance and monetization of a huge installed base. Whether that reversal ages better than the first attempt will depend on how quickly the ad tier closes the ARM gap and how much of the $27.1 billion repurchase authorization gets deployed while shares trade well below their 52-week high of $126.71.
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