Should You Follow Bill Ackman Into Netflix Stock?
There aren't a lot of silver linings in the disappointing report that Netflix (NASDAQ: NFLX) streamed for its shareholders last week, but one of them is that it's starting to smoke out some unusual investors. Pershing Square's Bill Ackman revealed on Wednesday afternoon that his firm has amassed a 3.1 million-share stake in the leading -- but bleeding -- premium-video service.
On Friday of last week, Ackman began his shopping spree as shares plunged 22% following its problematic financial update. A weak quarter and a gloomy near-term outlook are raining on the streaming party. He kept buying this week, as the stock has now fallen sharply for four consecutive trading days. The stock has now shed nearly half of its value since peaking just two months ago.
Ackman is a well-known activist and value investor. Yes, we're at the point where an iconic value investor is loading up on Netflix stock. If you thought 2021 was weird, welcome to 2022.
Source Fool.com
