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Netflix shares rise after Pershing Square discloses new stake
Netflix shares closed up 5.4% on Aug. 13 after Pershing Square Holdings disclosed the new investment, even as the stock remains about 42% below its June 2025 peak.
Netflix shares rose 5.4% in the Aug. 13 close after Pershing Square Holdings disclosed a new stake in the streaming company, a move highlighted as a show of confidence while the stock trades well below its prior high. According to Yahoo Finance, Netflix has fallen roughly 42% from its June 2025 peak, contributing to a contraction in its forward price-to-earnings multiple. The investment case presented centers on expectations that Netflix can sustain double-digit revenue growth while keeping content expenses below sales growth, which could support margin expansion. The article also points to Netflix's aggressive share repurchase program and Pershing Square’s expectation that Netflix earnings could compound at close to 20% annually if operating leverage continues. Still, the stock has been pressured, including by an anticipated moderation in growth. Yahoo Finance notes that Netflix projected 11.7% year-over-year revenue growth for Q3, below Wall Street expectations, and that the company faces tougher comparisons in the second half of the year due to a particularly strong prior-year period. Investor sentiment was further dampened by Netflix’s planned change to its engagement reporting practices, which starts in 2027.