THE APEX TIMES
The Pershing Square chief executive pointed to a roughly 55% decline from Netflix’s June 2025 peak, arguing the stock now screens as cheap. Whether that judgment holds depends on how investors weigh near-term uncertainty against Netflix’s longer-term earnings potential.
Bill Ackman, CEO of Pershing Square Capital Management, used a recent interview to frame Netflix as a bargain after the streaming giant’s shares sank materially from a prior high. Speaking on CNBC’s Squawk Pod, Ackman described Netflix as “an incredibly cheap stock,” tying his view to the magnitude of the decline since the June 2025 high and to broader portfolio actions he has taken recently, including reducing exposure to Alphabet.
Ackman’s comments arrived alongside a broader market debate over how quickly growth and profitability improvements should show up in the stock price for mature consumer internet businesses. Netflix is no longer an early-stage streaming entrant. It competes in a crowded global market, manages expectations around subscriber growth, and must continually finance content to retain and win audiences.
In the interview, Ackman contrasted Netflix’s current valuation appeal with the recent path of the stock. According to the discussion reported by Yahoo Finance, Netflix is down about 55% from its June 2025 high, and Ackman argued that drawdown makes the shares look inexpensive relative to his assessment of the business.
The remarks also referenced Ackman’s recent actions outside Netflix. The reported segment notes that his fund had sold out of most of its Alphabet stake before making the Netflix valuation case, underscoring that his “cheap” view is part of a wider rebalancing rather than a single-issue trade.
Netflix, as a company, does not treat its operating model as a static one. The company’s newsroom describes ongoing updates to programming, product features, and business initiatives, reflecting a constant push to improve customer retention and viewing engagement in markets where competition for attention remains intense. That context matters for investors because valuation arguments typically assume a clear line from content investment and customer behavior to future cash flows.
Even so, Ackman’s framing is not accompanied in the reported account by detailed, point-by-point valuation math, such as a specific earnings multiple, discounted cash flow estimate, or scenario analysis. The post also does not provide new, Netflix-specific disclosures that would allow outsiders to verify how his view maps to current fundamentals, such as subscriber momentum or margin trends.
For investors and observers, the open question is whether Netflix’s share price is “cheap” for reasons that can be addressed (for example, timing of content cycle returns, advertising or pricing strategy execution, or cost discipline), or whether the decline reflects structural concerns that are harder to reverse. Until Netflix provides clearer forward guidance or investors see tangible evidence of improving operating trends, valuation debate is likely to remain central.
What to watch next is how the next major updates from Netflix, including its formal business commentary and any investor-facing metrics, track against the market’s expectations that have driven the stock down. If results and guidance support a path toward durable earnings growth, Ackman’s thesis could gain credibility. If not, “cheap” could prove to be a temporary label rather than a lasting mispricing.
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