In the second quarter, Pershing Square deployed capital raised earlier in the year to acquire a fresh position in Netflix (NFLX), valuing the holding at more than $934 million at quarter‑end.
The stake accounts for roughly 4.8% of Pershing Square’s total assets under management, which stand at $19.47 billion, according to the firm’s interim report released in June.
Netflix’s share price has struggled, falling more than 40% over the past twelve months after reaching an all‑time high in mid‑2025, a decline that has heightened scrutiny of the company’s growth prospects.
Adding to the pressure, Wells Fargo analyst Steven Cahill downgraded Netflix to underweight and slashed his price target from $80 to $57 per share, suggesting a potential 21% downside from current levels.
Cahill warned that “engagement trends look worrying,” citing a lack of breakout original series and a shift in the platform’s reporting of viewer data from twice a year to once annually in July, which investors interpret as a red flag.
Pershing Square’s interim report, co‑authored by Ackman and Chief Investment Officer Ryan Israel, counters the bearish outlook, arguing that short‑form video competition is more likely to siphon viewers from linear TV and lower‑tier streaming services than from a “utility‑like” service such as Netflix.
The report also notes that while artificial‑intelligence tools are reshaping content creation, the compute‑intensive nature of high‑quality, long‑form video keeps production costs high, a factor the firm believes gives Netflix a competitive edge.
Analysts and investors will watch how Pershing Square’s sizable bet interacts with the broader concerns about viewer engagement, rising subscription fees, and Netflix’s recent forays into video podcasts and partnerships with YouTube creators.