Netflix: Bill Ackman Came Back For A Reason

Netflix, Inc. remains a Strong Buy, supported by robust core growth, expanding opportunities, and a compelling valuation near 21x forward earnings. Pershing Square Holdings' renewed NFLX thesis aligns with my view that the market undervalued NFLX’s double-digit revenue and 19% EPS growth potential. NFLX’s margin expansion is driven by controlled content costs, scale efficiencies, and new initiatives in ads, live events, and AI-enhanced content. Despite a recent 20% price increase, NFLX still offers a significant margin of safety and multiple growth levers, justifying continued conviction.