TLDR
- Netflix stock rose 5.44% to $78.24 in the latest session.
- Pershing Square disclosed a new 3.15 million-share Netflix position.
- Ackman returned to NFLX four years after exiting with a loss above $400 million.
- Netflix reported Q2 revenue of $12.56 billion, up 13.4% year over year.
- Analysts’ average NFLX price target stands near $96, implying about 23% upside.
Netflix stock climbed 5.44% to $78.24 in the latest session as billionaire investor Bill Ackman returned to the streaming company four years after exiting a previous position at a loss of more than $400 million. Pershing Square disclosed a new 3.15 million-share Netflix stake as of June 30, equal to about 4.9% of its portfolio.
Source: KnockOutStocks
The renewed investment comes after NFLX fell sharply from its 2025 peak and traded near $66 in July following second-quarter guidance that raised concerns about future growth. Netflix has since recovered toward the upper $70s, while analyst price targets remain above the current share price on average.
Bill Ackman Returns to Netflix After 2022 Exit
Pershing Square said it had acquired Netflix again after following the company since its brief investment in 2022. Ackman exited the earlier position after Netflix reported its first subscriber decline in a decade, a move that left the fund with a loss of more than $400 million.
The firm now holds a different view of the streaming business. Pershing Square said Netflix has “effectively won the streaming wars,” pointing to more than 325 million subscribers and a user base that it says is nearly twice the combined total of Disney+ and HBO Max. The statement reflects Pershing Square’s investment view rather than a confirmed industry ranking based on every competitive measure.
Pershing Square also cited improved content spending, wider margins and stronger free cash flow. The fund said Netflix’s cash content spending has grown at an annual rate of about 2% since 2021, while its operating margin has expanded to about 31.5%. Advertising revenue is expected by the fund to approach $3 billion this year.
Netflix Earnings and Buybacks Support Ackman Thesis
Netflix reported second-quarter 2026 revenue of $12.56 billion, up 13.4% from a year earlier. The company also completed about $4.7 billion of share repurchases during the quarter, its largest quarterly buyback to date, while roughly $27 billion remained under its repurchase authorization.
Those figures form part of Pershing Square’s case for returning to NFLX. The fund said Netflix now converts about 90% of earnings into free cash flow and directs much of that cash toward share repurchases. Pershing Square also pointed to five-year annual growth rates of 12% for revenue, 21% for operating profit and 27% for earnings per share.
Ackman’s return is part of a wider portfolio reshuffle. Pershing Square also added Visa, Mastercard, Alcon, Intercontinental Exchange and S&P Global, while retaining holdings including Microsoft, Uber, Meta and Amazon.
NFLX Stock Forecast Points to Further Upside
Wall Street forecasts remain above Netflix’s current price, although estimates vary by data provider. A group of 31 analysts has an average 12-month NFLX price target of $96.27, with forecasts ranging from $70 to $135.
The $96.27 average target represents about 23% upside from $78.24, while the $135 high target would place the shares about 73% above the latest price. The $70 low target would imply downside of roughly 10.5%, showing a wide range of expectations around Netflix’s growth outlook.
A separate analyst dataset places the average target at $94.04, also above the latest market price. NFLX remains below its 2025 high near $134, leaving the stock’s next move tied to revenue growth, advertising expansion, engagement trends and future quarterly guidance
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