From 24/7 Wall St. · Omor Ibne Ehsan · · 50s
Ackman Bets $1 Billion on Netflix Redemption
Ackman's $1 billion Netflix bet targets redemption after 2022 loss
In brief
Ackman's $1 billion Netflix bet targets redemption after 2022 loss Ackman expects Netflix's ad tier growth to reverse 2022 losses Originally reported by 24/7 Wall St..
Ackman's Netflix Bet
Bill Ackman's Pershing Square disclosed a $1 billion Netflix position, 5% of its portfolio.
“Bill Ackman lost $400 million the last time he bought Netflix and bailed within three months.”
2022 Loss Recap
Ackman sold Netflix in 2022 after a $400 million loss, citing insufficient confidence in predicting Netflix's future.
Netflix's Current Strength
Netflix has 325 million paid subscribers and $9.46 billion free cash flow in 2025, up 36.68% year over year.
Ad Tier Growth
Netflix's ad tier drove over 60% of Q1 sign-ups with 4,000+ advertisers, up 70% year over year.
Why Ackman Bets
Ackman sees Netflix's ad tier as a scalable monopoly with pricing power, targeting $3 billion ad revenue by 2026.
The main idea
Ackman expects Netflix's ad tier growth to reverse 2022 losses
