Bill Ackman Reinvests in Netflix
Bill Ackman’s Pershing Square Capital Management disclosed a position of 3.15 million shares in Netflix (NASDAQ: NFLX), representing approximately 4.9% of its Pershing Square USA fund as of June 30, 2023. This marks Ackman’s return to Netflix after selling his previous stake in April 2022 at a loss exceeding $400 million.
On August 10, 2023, Netflix shares rose over 5% following this announcement. Despite noting a slowdown in revenue growth—with management forecasting an 11.7% increase for Q3—Netflix’s second-quarter revenue climbed 13.4% year over year to $12.6 billion, and its operating margin was reported at 33.4%. The company’s total subscriber count has surpassed 325 million.
As of now, Netflix shares are trading around $78, down roughly 38% from their 52-week high of $126.71. Ackman’s renewed investment comes amid a shifting landscape for Netflix, which is bolstering its advertising revenue, expected to double to around $3 billion this year.
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