Bill Ackman’s Recent Hedge Fund Moves
Billionaire investor Bill Ackman, through his hedge fund Pershing Square, sold his entire stake in Alphabet (NASDAQ: GOOGL) and initiated a new position in Netflix (NASDAQ: NFLX) during the second quarter of 2023. Alphabet’s revenue for the quarter reached $120 billion, a 24% increase year-over-year, although it reported negative free cash flow for the first time as a public company. Meanwhile, Netflix’s stock has plummeted 42% from its June 2025 peak, primarily due to concerns about its growth prospects, despite analysts projecting a 21% annual earnings increase over the next three years.
Alphabet is heavily investing in artificial intelligence infrastructure, raising its capital expenditure guidance to $200 billion by 2026, which could lead to increased stock volatility as its spending is scrutinized. In contrast, Ackman views Netflix as undervalued, with current earnings at a valuation of 24.7 times projected earnings and a median target price of $94 per share, reflecting a potential 20% upside from its current trading level of $78.
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