Key Points
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Pershing Square Capital Management, led by Bill Ackman, has rebuilt its position in Netflix (NASDAQ: NFLX) in Q2 2026, after exiting in June 2022.
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The forward price-to-earnings (P/E) ratio for Netflix dropped from 40 to 21 amid the Warner Bros. Discovery bidding process, prompting Ackman’s reinvestment.
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Netflix currently captures only 7.5% of total U.S. TV viewing time, indicating significant market share potential from competitors like Disney and Amazon.
Bill Ackman’s Pershing Square Capital Management has re-entered Netflix after selling its shares in June 2022, citing improved pricing metrics as a key factor. The company noted that Netflix, which has twice the number of subscribers as its two closest rivals combined, is expected to achieve annual sales growth in the double digits while managing content costs effectively.
As of now, Netflix has registered a $2.8 billion breakup fee following the failure of a Warner Bros. Discovery deal and is exploring avenues such as mall-based entertainment centers and video game monetization, further solidifying its growth potential in an evolving streaming landscape.
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