Ackman’s Biggest Portfolio Overhaul in Years Includes a Return to Netflix
Bill Ackman once fled Netflix at a loss, so his decision to buy back in now raises a pointed question: does he see a genuine turnaround forming in a stock that has badly lagged the market, or is he walking…
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Bill Ackman is back in Netflix (NASDAQ:NFLX | NFLX Price Prediction). On Thursday, August 13, 2026, Ackman unveiled six new holdings in his biggest portfolio overhaul in years, including Netflix, Mastercard (NYSE: MA), and Visa (NYSE:V). Per Reuters, he said the shares were acquired starting in the second quarter and will be held in his investment funds, including Pershing Square USA (NYSE:PSUS). He held Netflix briefly in 2022 and sold at a loss. He is re-entering while the stock trades deeply out of favor.
How Netflix Makes Money Now
Today’s Netflix differs from the growth-at-all-costs streamer of 2022. The company has crossed 325 million paid subscribers, and its ad-supported tier has become the primary on-ramp for new members. The ad tier represented over 60% of all Q1 sign-ups in countries where ads are available, with the advertiser count growing 70% year over year to more than 4,000 clients. Management expects ad revenue to roughly double to around $3 billion in 2026.
The buyback engine is substantial. Netflix repurchased $4.7 billion worth of its shares in Q2 2026, its largest buyback quarter ever, with $27.1 billion remaining under authorization. After walking away from the Warner Bros. deal, Netflix collected a $2.80 billion termination fee and resumed aggressive stock buybacks.
What $1,000 in Netflix Would Be Worth Today
Here’s where it gets interesting. Netflix has trailed the S&P 500 heading into Ackman’s purchase. Have a look at what $1,000 invested in Netflix would have done for you.
| Netflix | S&P 500 | |
| 5-Year Return | 51.50% ($1,515) | 74.41% ($1,741) |
| 1-Year Return | −36.48% ($635) | 20.37% ($1,204) |
| YTD Return | −16.64% ($834) | 13.85% ($1,139) |
Netflix has trailed the S&P 500 over the past year and year to date, while the five-year figure remains positive but lags the index. Ackman is buying a genuine laggard, consistent with his value-oriented approach. That fits the value setup he prefers, though price weakness alone does not guarantee a bargain.
The Takeaway
Ackman’s long-term record is strong, but recent performance has been rough. Through July 2026, Pershing Square USA was down 3.5% for the year, and London-listed Pershing Square was down 9.2%, versus a 10% gain for the S&P 500 total return index. The 2022 Netflix exit proves he is not infallible.
Netflix looks compelling if you believe the ad tier scales to $3 billion as guided, margins expand toward the 31.5% target, and buybacks shrink the share count. The bear case strengthens if a P/E near 30 is too rich for a business where free cash flow declined 32.73% year over year in Q2 and competition from Alphabet, Amazon, Disney, and YouTube continues to intensify.
The setup is more attractive than it was a year ago, when Netflix traded at around $123. Ackman is buying weakness in a cash-generative, buyback-heavy franchise with clear ad-tier growth. However, content costs and a $1 billion debt maturity later in 2026 will test the story.
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Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.
Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community.
Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.
Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, moderating workshop sessions at regional conventions.
