Changes in US stocks | Netflix (NFLX.US) rose more than 3% to be bought by billionaire Ackman

The Zhitong Finance App learned that on Tuesday, Netflix (NFLX.US) rose more than 3% to $78.75. According to news, in April of this year, billionaire investor Bill Ackman's Pershing Square Capital just raised 5 billion US dollars in new capital. In the second quarter, he directly cleared Alphabet and used the freed up capital to buy Netflix, which had a sharp correction in stock prices in the first half of the year. In the second quarter, Pershing Plaza bought more than 13 million Netflix shares, and the market value of its holdings exceeded US$934 million, accounting for nearly 5% of the portfolio.

This institution, founded by Ackman, has a cumulative return of 2530% and an annualized return of 15.6% since 2004, far exceeding the cumulative return of 964% of the S&P 500 over the same period. It has always been famous for its concentrated portfolio style of 10-12 stocks.

Previously, Netflix's acquisition of Warner Bros. Exploration assets failed and received a termination fee of 2.8 billion US dollars. Combined with market concerns that short videos and AI generated long videos would impact their users' time, and stock prices continued to be under pressure. However, Ackman believes that these concerns have been completely exaggerated: short videos are distributed over the length of time on traditional TV and low-quality streaming media, and the short video explosion in the past two years has not affected Netflix's performance; however, the cost of generating high-quality long videos with AI is extremely high. Instead, Netflix's massive user size can dilute content costs, and AI can further optimize its content recommendation and ad targeting capabilities.