LOS GATOS, California, Aug. 13, 2026, 07:11 PDT — Netflix (NFLX) stock climbed 3% after investor Bill Ackman returned as a buyer, with the stock’s advance representing 86% of its yearly cash flow.
- Netflix gained 3.48% following the disclosure of a new investment by Bill Ackman.
- The action signaled an equity-value increase of $10.7 billion, representing 86% of expected 2026 free cash flow.
- A regulatory filing due on Friday is expected to disclose the size of the stake and its cost basis.
Shares of Netflix, Inc. NASDAQ:NFLX rose 3.48% to $76.79 as of 09:36 EDT on Thursday, with U.S. markets trading. The increase came after Bill Ackman revealed he had re-invested in the streaming firm after previously selling his stake in 2022.
The response increased Netflix’s market value by approximately $10.7 billion. This amount represents close to 86% of executives’ $12.5 billion free-cash-flow projection for 2026. It also surpasses the company’s record buyback in the second quarter by 2.3 times.
| Market measure | Aug. 13 reading | Investor context |
|---|---|---|
| Share price | $76.79 | 09:36 EDT |
| Daily change | +$2.58, or 3.48% | Closed previously at $74.21 |
| Volume | 3.84 million | Early activity in normal trading |
| 52-week range | $65.08–$126.71 | Trailing the peak by 39.4% |
| Analyst average target | $94.04 | Trades 22.5% under target |
Ackman reported his funds began acquiring six new positions in the second quarter. His typically concentrated portfolios generally contain around a dozen companies. The announcement on Thursday did not disclose the size of the Netflix holding, which will be revealed in the upcoming regulatory filing.
The backing comes after Ackman’s listed funds faced early challenges. As of July, Pershing Square USA NYSE:PSUS had fallen 3.5%. Pershing Square Holdings (LON:PSH) was down 9.2%. In comparison, the S&P 500 had risen 13%, according to Reuters.
| Value comparison | Amount | Netflix share-price gain relative to measure |
|---|---|---|
| Estimated intraday equity value rise | $10.73 billion | 100% |
| Projected 2026 free cash flow | About $12.5 billion | 85.9% |
| Share buybacks during Q2 | $4.7 billion | 2.3 times |
| Q2 free cash flow | $1.53 billion | 7.0 times |
The cash comparison is significant as Netflix has moved its focus from subscriber numbers to profitability and cash flow. Second quarter revenue increased by 13.4%. Operating income was up 11.1%, but the operating margin slipped by 0.7 percentage point.
| Second-quarter metric | 2026 | 2025 | Change |
|---|---|---|---|
| Revenue | $12.56 billion | $11.08 billion | +13.4% |
| Operating income | $4.19 billion | $3.77 billion | +11.1% |
| Operating margin | 33.4% | 34.1% | -0.7 percentage point |
| Net income | $3.40 billion | $3.13 billion | +8.8% |
| Diluted EPS | $0.80 | $0.72 | +11.1% |
| Free cash flow | $1.53 billion | $2.27 billion | -32.7% |
Free cash flow declined in part due to increased tax payments related to a termination fee. However, management maintained its full-year outlook close to $12.5 billion. The company also projects 2026 revenue between $51.0 billion and $51.4 billion, with an operating margin of 31.5%.
Netflix reported that “engagement is healthy,” referencing its wide range of programming. Viewing hours in the first half climbed 2% compared with the prior year. Management expects advertising revenue to almost double to approximately $3 billion this year.
| Region | Q2 revenue | Year-on-year growth |
|---|---|---|
| United States and Canada | $5.43 billion | 10% |
| Europe, Middle East and Africa | $4.03 billion | 14% |
| Latin America | $1.58 billion | 21% |
| Asia-Pacific | $1.51 billion | 16% |
The composition highlights how cash forecasts remain stable even as domestic growth slows. Latin America and Asia-Pacific reported higher growth rates than the main North American segment. However, this advantage may be offset by currency fluctuations and reduced pricing in some regions.
External projections reflected a tougher view on short-term cash flow. According to S&P Global Market Intelligence, free cash flow in the second quarter was 37.8% below consensus expectations. In contrast, operating income surpassed consensus by 1.7%.
Wall Street sentiment stays upbeat, though some price targets have been lowered. Of 51 analysts tracked, 36 give the stock a Buy or Strong Buy rating, while 15 assign a Hold. No analyst has a Sell rating, based on the most recent data.
| Date | Analyst | Firm | Recommendation | Target action |
|---|---|---|---|---|
| July 27 | Sachin Mittal | DBS | Buy | $112 lowered to $94 |
| July 22 | Doug Anmuth | JPMorgan | Buy | $85 |
| July 22 | Vikram Kesavabhotla | Baird | Buy | $120 cut to $90 |
| July 20 | Markus Leistner | DZ Bank | Buy | Not disclosed |
| July 19 | Helena Wang | Phillip Securities | Buy | $110 |
Netflix shares were priced at $76.79, or roughly 21.4 times forward earnings. Despite Thursday’s gain, the stock stayed 39% under its 52-week high. Ackman’s return comes after expectations have adjusted, rather than at peak valuation.
Risks: The early surge might reverse should Ackman’s revealed stake turn out to be minor. Advertising expansion may lag projections. Margins and cash flow could also face strain from higher content expenses, currency fluctuations, or weaker user engagement.
The upcoming filing on Friday will provide the latest challenge. It is expected to reveal both the size of the position and when it was acquired. This will allow investors to assess if Thursday’s $10.7 billion revaluation reflects the scale of Ackman’s real investment.
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