Bill Ackman's Pershing Square Takes Nearly 5% Position in Netflix

Bill Ackman's Pershing Square Capital Management disclosed that it now holds about 3.15 million Netflix shares, representing roughly 5% of the fund’s portfolio. The stake was added during the second quarter, a period the firm described as challenging for the streaming company.

In a shareholder letter posted on Pershing Square’s website, Ackman highlighted Netflix’s position as the largest global streaming platform, with more than 325 million subscribers, nearly twice the combined subscriber base of its closest rivals Disney+ and HBO Max. He noted that the company can outspend competitors on content while spreading costs across its extensive user base, converts about 90% of earnings into free cash flow, and is expanding its ad-supported tier, which generated about $3 billion in advertising revenue this year.

"Netflix can outspend rivals on content while spreading the cost across the industry’s largest user base," the letter said.

Ackman’s thesis also points to the modest share of live programming in overall watch time but its role in attracting and retaining subscribers, and expects the firm to achieve double-digit revenue growth with margin expansion as content spending slows.

Netflix’s own Q2 report indicated that members watched 97 billion hours in the first half of 2026, a 2% year-over-year increase, suggesting continued engagement despite competition from major sporting events. The company’s revenue growth and profit margins have been driven by subscriber additions, price hikes and rising ad revenue, while higher content amortization in the first half signals stronger operating income in the second half.

The stock is currently trading at under 25 times earnings, well below its five-year average multiple of 40, which Ackman’s team describes as a discount opportunity for investors.