Bill Ackman's Pershing Square Re-Enters Netflix Four Years After Losing More Than $400 Million, Says NFLX Has ‘Won the Streaming Wars’
Key takeaways
- Pershing Square's re-entry into Netflix reflects Ackman's renewed confidence in the company's victory in the streaming wars.
- Netflix's current valuation multiple represents a substantial discount
- Pershing Square's new position in Netflix represents 4.9% of the firm's portfolio
- Netflix's shares have fallen 20.85% year-to-date
What happened
Bill Ackman's Pershing Square re-entered Netflix with a 3.15 million-share position, four years after losing more than $400 million.
Why it matters
The move reflects Ackman's renewed confidence in Netflix's victory in the streaming wars, with the firm expecting double-digit revenue growth and continued margin expansion.
Short-term and longer-term
Short-term. Over the next day or two, watch Bill Ackman's Pershing (NFLX) after the open: does the first move hold, and do other companies in the same business move with it.
Longer-term. Over the next few months, the question for Bill Ackman's Pershing (NFLX) is whether this changed the longer case, or it is one event in a longer story.