Observed Signal · Aug 13, 2026 · Investment · Source: CNBC Investing · Impact: 2/5 · Sentiment: Positive
Ackman Buys Netflix Again, Says It Won Streaming Wars
Bill Ackman’s Pershing Square Capital Management disclosed a new position in Netflix in its semiannual report, signaling a return to the stock Ackman sold in 2022. Pershing said Netflix has “effectively won the streaming wars,” citing more than 325 million subscribers — nearly double the combined base of Disney+ and HBO Max — and argued the company’s scale supports heavy content spending and improving margins. Pershing noted Netflix’s valuation has reset after a roughly 50% decline from its June 2025 high, lowering the stock to about 21 times forward earnings, and outlined expectations for double-digit revenue growth, expanding margins, and aggressive share repurchases. Netflix shares rose about 4% after the disclosure.
Large investor re-entry into a major streaming platform signals confidence in Netflix’s market dominance and valuation reset; relevant to CTV/streaming ad market but not an industry-shifting policy or technical change.
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Key Takeaways & Evidence Grounding
- Pershing Square Capital Management disclosed a new position in Netflix in its semiannual report.
- Pershing said Netflix has 'effectively won the streaming wars,' citing more than 325 million subscribers, nearly twice the combined base of Disney+ and HBO Max.
- Bill Ackman previously built a large Netflix position in early 2022 and sold the entire stake about three months later after Netflix reported its first subscriber decline in over a decade.
- Pershing said Netflix shares have fallen roughly 50% from their June 2025 high of $134, reducing valuation to about 21 times forward earnings from more than 40 times.
- Pershing expects Netflix revenue to compound at a double-digit rate, earnings to grow close to 20% annually, and cited aggressive share repurchases as part of the bullish thesis.
Connected Companies & Entities
3 Entities mapped““We acquired a position in Netflix, a business we briefly owned in 2022 and have followed closely ever since,” Pershing Square said in the r...”
“Pershing said Netflix has “effectively won the streaming wars,” pointing to its more than 325 million subscribers, nearly twice the combined...”
“Pershing said Netflix has “effectively won the streaming wars,” pointing to its more than 325 million subscribers, nearly twice the combined...”
Ontology Mapping & Concepts
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
Joe Terranova Buys Netflix on Post‑Earnings Pullback
Joe Terranova, chief market strategist at Virtus Investment Partners, said on CNBC he plans to reestablish a position in Netflix following a post-earnings pullback, citing the streamer’s move into live entertainment as a long-term catalyst. Netflix shares have fallen about 15% since Thursday after the company issued a disappointing current-quarter earnings forecast of $0.78 per share versus an LSEG analyst consensus of $0.84. Retail investor flows into Netflix spiked, with the 5-day rolling net retail buying reaching $290 million — the highest level since December 2025. The CNBC segment also featured other investors: Stephen Weiss bullish on UnitedHealth after an earnings beat, and Anastasia Amoroso cautioning that public cybersecurity stocks are crowded and that investors should select firms embedding AI.
Netflix Tops 325M Subs; $82.7B Bid for WBD
Netflix reported Q4 2025 results showing it surpassed 325 million global subscribers and beat Wall Street estimates. The company’s ad-supported business generated over $1.5 billion in 2025 — more than 2.5x year-over-year — and Netflix expects ad revenue to roughly double in 2026 as the ad tier scales. Strong originals (notably the final season of Stranger Things) drove viewing gains and helped Netflix capture a record share of U.S. TV viewing in December. At the same time, Netflix has submitted an $82.7 billion all-cash bid for Warner Bros. Discovery’s studio and streaming assets, a move that spooked investors due to financing, integration and bidding-war risks. Netflix forecasts 12–14% revenue growth for 2026 and plans to increase content amortization, implying a ~ $20 billion content budget for the year.
Trader Mike Khouw Sees Netflix Ad Growth Powering Recovery
Trader Michael Khouw argues that Netflix's stock is cheaper while the underlying business is improving, driven by higher margins, free cash flow, and an emerging ad business. The article cites Netflix trading at about 18.9x forward earnings, roughly four turns above its 2022 trough, and highlights roughly 325 million paying members as a scale asset for connected-TV advertising. Khouw cites an expected ad revenue ramp (around $3 billion this year, with a potential path to $10 billion by 2030), management share buybacks, and generative AI lowering content production costs as positive fundamentals. He outlines a defined-risk options trade (an August 65/78/88 covered strangle) that yields about $1.10 net credit (~1.5% in 25 days). The piece frames these developments as supportive for Netflix’s monetization and CTV advertising prospects.
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