Billionaire hedge fund manager Bill Ackman acquired 13.1 million shares in Netflix (NASDAQ: NFLX) during the second quarter of 2026, signaling renewed confidence in the streaming giant.
The position was held through Ackman’s Pershing Square fund, though as of June 30 the stake represented less than 5% of the total portfolio, falling outside the fund’s top-10 holdings.
Pershing Square’s Q2 2026 shareholder letter made the investment thesis plain, stating that Netflix has “won the streaming wars” and citing its commanding market position.
The fund’s interim report, co-authored by Ackman and Chief Investment Officer Ryan Israel, revealed they purchased shares after Netflix fell roughly 50% from an all-time high set in June 2025.
That decline brought Netflix’s forward earnings multiple down from 40 times to 21 times, presenting what Pershing Square viewed as a compelling entry point relative to the stock’s historical valuation.
Netflix’s scale underpins much of the investment case, with the company boasting more than 325 million subscribers and forecast 2026 revenue of $51.2 billion.
Second-quarter 2026 results reinforced the growth story, with overall revenue climbing 13% year over year, led by 21% growth in Latin America and 16% growth in Asia-Pacific.
Engagement metrics also remained resilient, with members watching 97 billion hours of content in the first half of 2026, up 2% year over year despite significant competition from the Winter Olympics and the World Cup.
Netflix’s advertising business is becoming an increasingly important revenue driver, with the ad-supported tier accounting for over 60% of new sign-ups in the first quarter, and management targeting $3 billion in ad revenue for the full year 2026.
Content amortization running heavier in the first half of the year is expected to ease in the second half, pointing toward stronger operating income growth as 2026 progresses.
The company’s roadmap for further expansion includes embedding artificial intelligence more deeply into its operations and broadening into new content formats such as podcasts, live television, and shorter-form video.
Ackman’s track record with Netflix is not without blemish, however, as Pershing Square previously held a short-lived position in early 2022 before selling out after one disappointing quarter, only to miss a subsequent 246% rally in the stock.
That episode raises legitimate questions about the fund’s timing and conviction, particularly for a manager known for running a concentrated, long-term-oriented book.
At current prices, Netflix trades at less than 25 times earnings, a significant discount to its five-year average multiple of approximately 40 times, suggesting the stock may offer meaningful upside for patient investors willing to follow Ackman’s lead.
