Why Bill Ackman Traded Alphabet (GOOGL) Stock for Netflix (NFLX)
TLDR
- Bill Ackman’s Pershing Square sold its entire Alphabet stake in Q2 and opened a new position in Netflix.
- Netflix is trading at $78.25, down 42% from its June 2025 high of $126.71.
- Alphabet reported negative free cash flow for the first time as a public company and raised 2026 capex guidance to $200 billion.
- Wall Street has a “Moderate Buy” consensus on Netflix with an average price target of $96.65.
- Netflix gained 13% in August after hitting a 52-week low, with institutional investors owning roughly 81% of the stock.
Bill Ackman’s Pershing Square made a notable portfolio switch in Q2, ditching its entire position in Alphabet and picking up Netflix instead. It’s a move that tells a clear story about where one of the world’s top hedge fund managers sees value right now.
Netflix opened at $82.67 on Friday and is currently trading at $78.25, sitting 42% below its June 2025 record high of $126.71. The 12-month low is $65.08. Despite the selloff, Ackman sees the stock as too cheap to pass up.
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