As Netflix Craters, Ackman Jumped In
Posted on 01/27/2022
The share price of Netflix, Inc. closed at US$ 690.31 at October 29, 2021. Shares of Netflix moved past US$ 700 to a record on November 19, 2021. The price on January 26, 2022 closed at US$ 359.70. The price of Netflix shares have almost fallen in half from their record intraday high in November 2021 and are trading at their lowest since April 2020, when COVID-19 started spreading fast across the U.S.
Bill Ackman is the Founder and CEO of Pershing Square Capital Management, L.P. and they bought 3.1 million shares of Netflix after recent sell-off, becoming a top 20 shareholder.
In a letter to investors, Ackman wrote, “Beginning on Friday and over the last several days, we acquired more than 3.1 million shares of Netflix, Inc. (NASDAQ:NFLX), making us a top-20 shareholder in the company. The opportunity to acquire Netflix at an attractive valuation emerged when investors reacted negatively to the recent quarter’s subscriber growth and management’s short-term guidance. Netflix’s substantial stock price decline was further exacerbated by recent market volatility.”
Ackman tweeted on January 26, 2022, “We recently purchased more than 3.1m shares of @Netflix which makes us a top-20 holder. I have long admired Reed Hastings and the remarkable company he and his team have built. We are delighted that the market has presented us with this opportunity.”
