Billionaire Investor Bill Ackman Buys 3.15M Netflix Shares, Declaring “Netflix Has Effectively Won the Streaming Wars”

Billionaire investor Bill Ackman is buying shares of Netflix (NFLX) again through his investment firm, Pershing Square. The hedge fund picked up 3.15 million shares, carving out a position that now makes up 4.9% of its portfolio.

In its latest report to investors, Pershing Square stated that “Netflix has since effectively won the streaming wars.”

This new investment comes four years after Ackman suffered a severe loss on the same stock. In early 2022, Pershing Square bought over 3 million NFLX shares but sold them just three months later, taking a loss of more than $400 million after Netflix reported its first subscriber decline in a decade.

Pershing Stood by Netflix Through Thick and Thin

Pershing Square explained that when it first bought shares in 2022, “investors feared an escalating content arms race among a crowded field of streaming entrants.” The firm noted that high spending on new shows weighed down cash reserves, while adding a cheaper, ad-supported plan created extra uncertainty.

However, the hedge fund believes Netflix turned those moves into major strengths. Netflix now leads the industry with more than 325 million subscribers, which is nearly double the combined total of Disney+ (DIS) and HBO Max. Pershing Square pointed out that Netflix keeps its content costs growing at just 2% annually while converting roughly 90% of its earnings directly into free cash flow.

Netflix Sits 50% below Its June 2025 Peak

Netflix stock trades near $74 per share, down roughly 20.9% since the start of 2026. The stock sits about 50% below its June 2025 peak of $134, dropping its price tag from 40 times earnings down to 21 times earnings.

Pershing Square used this drop to buy back into the business at a lower price. The firm expects Netflix to grow its total revenue at double-digit rates every year, while net earnings grow by roughly 20% annually through advertising sales and share buybacks.

Risks Threaten Netflix’s Continued Streaming Growth

Despite Pershing Square’s positive outlook, Netflix faces real business risks. Morgan Stanley analyst Sean Diffley points out that viewer time across paid streaming apps is growing slowly. While overall watch time remains high, total hours spent watching traditional streaming services rose just 2% during the first half of 2026.

At the same time, people spend more of their free time on free social apps. Free platforms like YouTube, TikTok, and Instagram take attention away from full-length movies and TV shows. Short mobile drama apps are also taking up more viewing time among younger audiences.

New artificial intelligence tools pose another risk. Advanced AI video makers let small teams and individual creators build high-quality video content at a fraction of normal movie costs. If lower costs allow small creators to produce great videos fast, Netflix could lose some of its advantage in original shows over time.

Is Netflix a Good Stock to Buy?

Netflix’s stock has a consensus Strong Buy rating among 31 Wall Street analysts. This rating is based on 24 Buy and seven Hold recommendations issued in the past three months. The average 12-month NFLX price target of $96.27 implies 29.7% upside from current levels.

See more NFLX analyst ratings