Updated
Updated · The Motley Fool · Aug 18
Pershing Square Buys $934 Million Netflix Stake After Exiting Alphabet
Updated
Updated · The Motley Fool · Aug 18

Pershing Square Buys $934 Million Netflix Stake After Exiting Alphabet

1 articles · Updated · The Motley Fool · Aug 18

Summary

  • Pershing Square bought more than 13 million Netflix shares in the second quarter, building a stake worth over $934 million that now accounts for nearly 5% of its portfolio.
  • Netflix drew Ackman after the stock fell about 50% from its June 2025 high and its forward earnings multiple dropped to 21 times from 40.
  • Ackman and CIO Ryan Israel said fears over weaker engagement, short-form video and AI-generated competition are overstated, arguing Netflix's scale still gives it a content and distribution edge.
  • The purchase followed Pershing's full exit from Alphabet in the second quarter after selling most of that position earlier this year, freeing capital for new bets.
  • The move comes as Pershing deploys part of roughly $5 billion in newly raised capital through Pershing Square USA and related vehicles.

Insights

Could AI actually solidify Netflix's streaming dominance rather than destroy it, as Pershing Square's massive bet suggests?
Why did a top billionaire dump a thriving AI giant for a streaming stock that recently lost half its value?