He bought on a big dip. The streamer’s stock has been killed since its fourth-quarter earnings report last week, and amid a series of broad market selloffs tied to interest rate jitters. Investors reacted negatively to Q4 subscriber growth and management guidance. In Pershing Square’s letter to shareholders today, Ackman called that an “opportunity to acquire Netflix at an attractive valuation.” The shares closed down 1.8% but reversed course after hours, up nearly 5%.
“We have greatly admired Netflix both as consumers and as investors, but have never previously owned a stake in the company,” he said, calling the platform founded by Reed Hastings “a primary beneficiary of the growth in streaming and the decline in linear TV driven by its superior customer experience,