Bill Ackman's Pershing Square Took a New Stake in Netflix in 2026, Years After a Money-Losing Bet on the Stock. Why He Says This Time Is Different.
Ackman was right about Netflix, but he still lost money on his investment.
Overview
Back in early 2022, Bill Ackman plowed about $1.25 billion worth of Pershing Square's (NYSE: PS) capital into Netflix (NASDAQ: NFLX). In his letter to shareholders, he expressed confidence in the competitive advantages of the streaming video leader and its ability to translate that into strong earnings growth. Just a few weeks later, however, he sold the position entirely, taking a significant loss on the investment.
Ackman never stopped following the company, though. Earlier this year, he bought a new position in Netflix worth about $1 billion. Here's what pushed Ackman out of the stock the first time and why he thinks it's worth buying now.
Bill Ackman. Image source: Getty Images.
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Source
Originally published at www.fool.com.