Markets· August 16, 2026 at 02:17 p.m.
Bill Ackman Reverses Course on Netflix, Cites Strong Cash Flow and Subscriber Base
Key takeaways
- Bill Ackman purchases 3.15 million Netflix shares
- Netflix now serves more than 325 million paid subscribers worldwide
- About 90% of Netflix's earnings convert into free cash flow
Investment mogul Bill Ackman has made a surprising move by purchasing Netflix shares again, marking a U-turn from his previous sale in early 2022. Pershing Square Capital Management, Ackman's hedge fund, now holds 3.15 million Netflix shares, accounting for about 4.9% of its portfolio. This purchase is significant given that Ackman had sold his entire Netflix position three months after the initial buy due to uncertainty over changes in Netflix's business model. However, Ackman now believes that Netflix has effectively won the streaming wars, citing its large subscriber base and strong cash flow as key factors.
