Bill Ackman Shifts $934 Million Bet from Alphabet to Netflix
Billionaire investor Bill Ackman has shifted his portfolio by selling all of Pershing Square's positions in Alphabet (GOOGL) and acquiring a significant stake in Netflix (NFLX), valued at approximately $934 million as of June 30, according to the firm’s latest regulatory filing. This move marks a reversal from an earlier loss-making investment in Netflix four years ago when Ackman exited due to subscriber losses. Ackman's rationale appears tied to changing competitive dynamics: he now believes that Netflix has won its sector battle and can focus on profitability through pricing, advertising, and live content—unlike Alphabet, which is facing rising capital expenditures driven by AI infrastructure. While Google Cloud revenue surged 82% in Q2 with total sales of $119.8 billion, Alphabet’s free cash flow turned negative for the first time due to heavy spending on AI. Pershing Square has positioned Netflix as one of six new investments this quarter alongside financial and healthcare firms like Visa and Alcon. The firm argues that Netflix's 33% operating margin in Q2 reflects a more mature, profitable phase compared to Alphabet’s costly growth strategy.
Topics: Alphabet (GOOGL) Bill Ackman Netflix (NFLX) Pershing Square stock trading