- Bill Ackman disclosed six new holdings including Netflix, Visa, and Mastercard
- Netflix shares rose as much as 4.6% following Ackman's portfolio overhaul news
- Ackman previously held Netflix shares briefly in 2022 and exited at a loss
Netflix shares jumped as much as 4.6% to $77.66 on Thursday, extending gains after billionaire investor Bill Ackman revealed a fresh position in the streaming giant as part of the biggest overhaul of his portfolio in years.
The stock pared some of the gains later in the session but remained firmly higher, trading 3.55% up at $76.87 as of 10:54 a.m. EDT.
The key catalyst behind the move was Ackman's disclosure of six new holdings, including Netflix, Visa and Mastercard. Ackman said on Thursday that he began acquiring shares of the companies during the second quarter. The investments will be held across his investment funds, including Pershing Square USA, which was listed on the New York Stock Exchange in April.
Netflix is not entirely new territory for Ackman. The billionaire investor had previously held the streaming company's shares briefly in 2022 before exiting the position at a loss.
His return to Netflix therefore marks a notable shift in his investment view on the company.
Ackman said he expects the companies he has recently invested in to deliver strong earnings growth. According to the billionaire investor, earnings growth is the primary driver of investment value over time, making the latest portfolio changes particularly significant.
The new investments represent the largest changes to Ackman's portfolio in several years. His investment strategy typically centres on a concentrated portfolio of no more than a dozen companies.
The decision to add Netflix indicates renewed confidence in the company's ability to generate earnings growth and create long-term value.
ALSO READ: Bill Ackman Unveils Biggest Portfolio Overhaul In Years; Adds Netflix, Visa, Mastercard
Ackman's current portfolio also includes Uber Technologies, Meta Platforms, Amazon.com, Fannie Mae and Freddie Mac. With Netflix now among his holdings, the streaming company becomes part of Ackman's highly concentrated investment strategy.
For Netflix shareholders, the immediate focus will be whether the company's earnings growth and broader business performance can justify the renewed confidence from one of Wall Street's most closely watched investors.
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