Netflix (NASDAQ: NFLX) shares jumped 3.3% in the afternoon session after activist firm Pershing Square Capital Management disclosed a substantial new equity position in the streaming giant.
Pershing Square, led by billionaire Bill Ackman, revealed a new stake of 3.15 million shares, representing 4.9% of the firm’s total portfolio.
The move carries particular significance given that Ackman previously held a position in Netflix before selling it at a loss in 2022, making this a notable reversal in his assessment of the company.
In a second-quarter letter to shareholders, Pershing Square asserted that “Netflix has since effectively won the streaming wars,” projecting sustained double-digit revenue growth and expanding profit margins.
Netflix also announced that its annual upfront advertising commitments have nearly doubled year-over-year, pointing to growing momentum behind its ad-supported subscription tier as a meaningful revenue contributor.
Shares were trading at $77.29, up 4.1% from the previous close, though Netflix remains down 15.1% since the beginning of the year.
At current prices, the stock trades 38.8% below its 52-week high of $126.33, reached in September 2025, reflecting a prolonged period of selling pressure despite the latest catalyst.
The stock’s move is notable given that Netflix shares have logged only six single-day moves greater than 5% over the past year, suggesting the market views this development as genuinely meaningful.
The most recent major move in the stock came 27 days ago, when shares dropped 8.7% after investors reacted to a third-quarter revenue forecast that fell short of Wall Street expectations.
That selloff came despite a broadly in-line second-quarter performance, where Netflix posted adjusted earnings per share of $0.80 and reported revenue of $12.56 billion.
For the third quarter, Netflix projected revenue of $12.86 billion, representing an 11% FX-neutral growth rate, which raised concerns about decelerating momentum despite management’s emphasis on full-year growth targets of 13% to 14%.
Investor unease was further compounded by Netflix’s decision to publish its detailed “What We Watched” viewing report annually rather than twice a year, a change many interpreted as reduced transparency into audience engagement trends.
Despite recent headwinds, investors who purchased $1,000 worth of Netflix shares five years ago would now hold a position worth $1,498, underscoring the stock’s longer-term track record of value creation.
