The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.

Netflix (NFLX) stock is in the spotlight on Friday as markets digest the news that billionaire hedge fund manager Bill Ackman has taken a sizable stake in the streaming giant. 

His firm Pershing Square Capital Management has loaded up on about 3.15 million NFLX shares, representing 4.9% of its overall portfolio. 

Mark Cuban Says If You Win The Lottery, Don't Take The Lump Sum — And Tell People Who Ask for Money No, But 'Be Nice. No One Likes a Mean Billionaire'

Analysts Keep Hiking Micron's Revenue and Price Forecasts - Shorting MU Puts Works Here

JPMorgan Just Upgraded Salesforce Stock. Here's Why.

Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today!

The news arrives at a time when Netflix shares are struggling to regain investor interest. At writing, they are down nearly 30% versus their year-to-date high in mid-April. 

Ackman's return to NFLX stock marks a dramatic reversal from 2022 when Pershing Square exited its stake at a loss following subscriber declines. 

In the firm's semiannual report, Ackman declared that Netflix has "effectively won the streaming wars," pointing to its massive global base of over 325 million subscribers. 

Driven by an ad-supported tier approaching $3 billion in revenue and robust cash conversion (near 90%), Pershing sees double-digit sales growth and margin expansion as content spending stabilizes

For NFLX, Ackman's endorsement delivers much-needed institutional validation, reinforcing that its post-earnings sell-off has created a compelling entry point for long-term investors. 

For retail investors, Netflix stock appears just as attractive following the multiple compression in 2026. 

At the time of writing, the Los Gatos-headquartered streaming giant is trading at a forward price-earnings (P/E) ratio of 21x – significantly below the historical average. 

NFLX's fast-growing footprint in live content, including sports, provides a durable catalyst, which makes it even more compelling, especially after its board authorized a new $25 billion buyback plan in April 2026.  

All in all, for growth-oriented investors, Netflix currently offers exposure to an industry leader at a discount and strong multi-year compounding potential.   

Investors should also note that Wall Street analysts – much like Ackman – are also convinced that NFLX shares are poised for significant gains through the remainder of 2026. 

The consensus rating on Netflix sits at "Moderate Buy" currently, with the mean price target of about $95, indicating potential upside of nearly 25% from here. 

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com