Investor Bill Ackman may have surprised many when Pershing Square Inc (NYSE:PS) took a stake in Netflix Inc (NASDAQ:NFLX) earlier this year. The stock was previously owned by Ackman in 2022 and sold after a short holding period.
Ackman recently shared why he’s back in Netflix stock.
• Where is NFLX stock headed?
Ackman on Netflix Stock
The legendary investor recalled a previous investment in Netflix that later led to an exit when the company got involved in the unproven advertising business side of things.
"Netflix is an amazing business with a very dominant position," Ackman said on "The Knowledge Podcast" with Shane Parrish.
Ackman said Netflix is one of the companies Pershing Square has done a lot of homework on over time due to the past investment in the company.
Since exiting the company in 2022, Netflix has built a strong advertising business, Ackman said.
Netflix has also become much more cash flow generative.
"The streaming wars, they won."
Ackman said Netflix is incredibly well positioned to innovate and is the standard when it comes to streaming, adding that Netflix may be the last thing a person shuts off before bed, even after shutting off the lights.
After the stock soared from 2022 to 2025, Netflix shares began falling in late 2025 and further declining into early 2026. Ackman said this offered a chance to get back into Netflix stock.
"At a price that made sense, we bought it back."
Ackman’s Netflix Bet
Pershing Square owns 13,081,465 Netflix shares as of the end of the second quarter. The position was valued at $934 million at the end of the second quarter and made up around 4.8% of the assets in the Pershing Square investment portfolio.
Often chided for exiting Netflix stock too quickly in 2022, time will tell if Ackman holds onto shares longer this time around.
Photo Courtesy: marekfromrzeszow on Shutterstock.com
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