Vote of confidence, Netflix climbs following Ackman stake, up 1.8%

Netflix stock rose 1.8% in pre-open trading today after Bill Ackman’s Pershing Square disclosed a new 3.15 million-share position in the streaming company through its semiannual report released Wednesday evening.

“We acquired a position in Netflix, a business we briefly owned in 2022 and have followed closely ever since. Netflix is the dominant global streaming platform with over 325 million subscribers, nearly double the combined base of its two closest competitors, Disney+ and HBO Max. When we first invested in early 2022, investors feared an escalating content arms race among a crowded field of streaming entrants. At the same time, cash content spend substantially exceeded content amortization, weighing on free cash flow. The launch of a previously disavowed advertising tier added further uncertaintWe recently made new investments in Visa, Mastercard, Netflix, S&P Global, Intercontinental Exchange, and Alcon, companies we have closely followed for years.”