Key Points
Bill Ackman and Pershing Square Capital Management have increased their stake in Netflix (NASDAQ: NFLX). This move comes after exiting a position at a significant loss in 2022. Ackman’s new thesis posits that Netflix is the current leader in the streaming sector and is well-positioned for future growth.
As of the second quarter of 2026, Netflix reported a 13% year-over-year revenue increase, with Latin America growing by 21% and Asia-Pacific by 16%. The company’s valuation metrics have improved, with stocks down over 30% in the past year, resulting in a forward P/E ratio of 24 and sales trading at less than 7 times.
Despite stiff competition in the streaming industry, Netflix is diversifying with podcasts, live events, and gaming, aiming to boost its international subscriber base with localized content. Ackman’s bullish stance on Netflix aligns with these expansion efforts.
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