Bill Ackman says Netflix appears undervalued, pointing to a path investors may have overlooked

Bill Ackman, CEO of Pershing Square Capital Management, told Yahoo Finance he believes Netflix’s stock is undervalued, offering a rare, bullish counterpoint to the skepticism that has surrounded the streaming industry in recent years.

Ackman made the comments at Yahoo Finance’s 2026 Invest conference, where the executive joined Yahoo Finance Executive Editor Lauren Lyster for a conversation focused on Netflix. The segment positioned Netflix as an “embattled” streaming company whose shares have drawn intense debate among investors.

While Ackman did not provide detailed figures in the information available for this report, the core of his argument was that Netflix’s valuation is not aligned with what he views as the company’s longer-term earning power and competitive position. In other words, he suggested the market may be pricing in too much deterioration or too little recovery.

Ackman’s framing matters because Netflix sits at the center of global streaming competition, where subscriber growth, engagement, and pricing strategy have been recurring battlegrounds. In that context, investors often look for evidence that a streaming platform can sustain growth while limiting margin pressure from content spending and intense rivals.

Netflix, for its part, continues to describe its business through product and programming updates through its newsroom, where it regularly highlights new content initiatives and features. However, the conference discussion itself, as reflected in the available material, did not disclose specific new company actions tied directly to Ackman’s valuation view.

For investors trying to translate Ackman’s remarks into actionable context, the limitations here are important. The post does not include the quantitative valuation framework he used, what time horizon he is assuming, or which near-term metrics would need to improve for his thesis to play out.

The conversation also leaves unanswered how Ackman reconciles his “undervalued” stance with ongoing uncertainty in streaming, including changing viewing patterns and the market’s sensitivity to content investment and competitive dynamics.

Going forward, what to watch is whether Netflix provides clearer disclosure or guidance that can be mapped to the valuation debate Ackman referenced, and whether the market’s expectations shift in response to results tied to subscriber economics, profitability, and cash generation.