Billionaire investor Bill Ackman has re-entered Netflix Inc., adding the streaming giant to Pershing Square Capital Management‘s portfolio alongside five other companies over the past six months, in a notable reversal for a manager who once exited the stock abruptly.
The move, disclosed through the firm’s regulatory filings, marks a striking return to a company Ackman first backed in 2017 before selling the position in 2018 at a substantial loss. At the time, he cited concerns over Netflix’s spending and slowing subscriber growth after the stock tumbled.
The renewed bet comes as Netflix has transformed its business model. The company has added a lower-priced advertising tier, expanded into live events and sports programming, and cracked down on password sharing, moves that have driven profitability and reaccelerated growth well beyond where it stood when Ackman first walked away.
“Netflix is a fundamentally different and stronger business than the one we owned years ago,” Ackman noted, pointing to the streamer’s improved margins and pricing power as central to the decision.
Pershing Square is known for running a concentrated portfolio of a small number of large positions, making each new holding significant. The firm has historically favored companies with durable competitive advantages, predictable cash flows and the ability to raise prices without losing customers.
Ackman has remained an active and visible presence in U.S. equity markets, from his high-profile stake in Hertz to his firm’s ambitions in the media and entertainment sector. The Netflix purchase deepens Pershing Square’s exposure to streaming and content at a time when the industry is consolidating and competing intensely for viewers.
The broader batch of new positions reflects a willingness to deploy capital across sectors, though the firm’s disclosures typically reveal holdings only after they have been established, offering a delayed snapshot of its thinking.
Netflix shares have climbed sharply over the past two years as investors rewarded the company’s pivot toward advertising revenue and disciplined cost management. That rally has made the stock considerably more expensive than when Ackman first bought in, raising questions about the timing of his renewed interest.
Supporters of the strategy argue that Netflix’s dominant position in global streaming and its expanding advertising business justify a premium valuation. Skeptics counter that much of the good news is already reflected in the share price, leaving less room for further upside.
Pershing Square’s filings will continue to be closely watched for any changes to the position in the coming quarters, as market observers gauge whether Ackman’s second act in Netflix proves more durable than his first.