Netflix Stock Has Been Beaten Down Lately. Some Big Investors Are Buying In
Netflix Stock Has Been Beaten Down Lately. Some Big Investors Are Buying In
Aaron McDadeFri, August 14, 2026 at 11:00 AM UTC
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Netflix shares are still down nearly 17% since the start of the year.Credit: Samuel Boivin / NurPhoto / Getty ImagesKey Takeaways -
Netflix shares have dropped nearly 17% this year, making it one of the worst-performing stocks in the S&P 500.
High-profile investors, including Bill Ackman’s Pershing Square and Cathie Wood’s ARK Invest, have recently purchased Netflix shares.
Analysts remain optimistic about Netflix, with most rating it a “buy” and projecting significant upside potential.
Netflix shares have had a rough year. Some well-known investors have been buying the dip.
Shares of Netflix (NFLX) rose more than 5% Thursday, a day after Bill Ackman’s Pershing Square (PS) disclosed new stakes in the streaming giant and several other stocks in a letter to shareholders.
Ackman and Chief Investment Officer Ryan Israel wrote in the letter that Pershing took advantage of Netflix’s prolonged slump in recent months to buy it at what they called “a substantial discount.” Netflix is one of the worst-performing stocks in the S&P 500 this year, down nearly 17%.
Pershing isn’t the only high-profile firm that’s been snapping up shares. Cathie Wood’s ARK Invest bought up more than 38,000 Netflix shares last month.
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Worries about Netflix’s user growth and engagement trends have pressured the shares recently, though Ackman and Israel said they believe Netflix has “effectively won the streaming wars,” citing a market-leading subscriber base.
Wall Street analysts are widely bullish on Netflix, with 11 of the 14 analysts tracked by Visible Alpha calling the stock a “buy.” Morgan Stanley analysts said in a recent note that they see engagement concerns as “overblown,” expecting growing revenue and profits from Netflix in the coming quarters.
The mean price target of analysts surveyed by Visible Alpha around $100 would suggest nearly 30% upside from Thursday’s close.
Pershing Square went public earlier this year with a dual listing of the firm and a closed-end fund. In their letter, the executives said Pershing has since used nearly all of the $5 billion it raised building new and previous investments including Netflix, Visa (V), Mastercard (MA), S&P Global (SPGI), Intercontinental Exchange (ICE), and Alcon (ALC).
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Source: “AOL Money”
