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Bill Ackman buys back Netflix stake after earlier $400M loss
Pershing Square said its new Netflix position represented 4.9% of the portfolio as of June 30.
Bill Ackman is returning to Netflix after previously exiting the stock at a large loss, according to Yahoo Finance. The Pershing Square CEO has bought back Netflix shares roughly four years after dumping an earlier stake.
Yahoo Finance reported that the new position made up 4.9% of Pershing Square’s portfolio as of June 30. In the firm’s semiannual report, Ackman and Pershing Square chief investment officer Ryan Israel wrote that Netflix has effectively won the streaming wars.
The piece also revisited Ackman’s original entry in January 2022, when he invested more than $1 billion after disappointing subscriber projections pushed the shares lower. Three months later, Netflix reported a loss of 200,000 subscribers in the first quarter, its first subscriber decline in a decade, and the stock fell 35% in a single day.
At the time of the earlier move, Ackman wrote that Pershing Square had lost confidence in its ability to predict the company’s future prospects with enough certainty. Yahoo Finance also said Pershing Square expects Netflix to deliver double-digit revenue growth, with content expenses rising more slowly than revenue.