Netflix has built a strong ad business and now generates more cash, easing Ackman’s earlier concern about unproven ads. His praise of its streaming lead supports a stronger outlook.
This matters because advertising was the concern behind Ackman’s earlier exit. He says Netflix has since built that business and now generates more cash. His view that Netflix leads streaming adds support, but it is an investor’s opinion, not a new report from Netflix.
Pershing Square owns about 13 million Netflix shares, around 4.8% of its portfolio. Ackman’s praise explains the holding, but the story reports no results from that investment.
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