Netflix Inc. (NFLX) shares were up 3.82% at $80.74 Wednesday afternoon, extending a multi-day rebound as investors digested a big vote of confidence from one of Wall Street's most prominent investors.
The broader market was also in the green, with the Nasdaq up 0.11% and the S&P 500 up 0.48%.
Billionaire Bill Ackman's Pershing Square disclosed in its interim financial report for the six months ended June 30 that it holds 3.15 million shares of Netflix. That position accounts for 4.9% of the fund's portfolio, a meaningful bet by any measure.
Pershing Square: Netflix Won the Streaming Wars
Pershing Square didn't just buy the stock; it explained why. In the report, the firm said, "Netflix has since effectively won the streaming wars."
The investment thesis centers on Netflix's ability to grow revenue at double-digit rates while content costs rise more slowly. That combination, Pershing argues, should keep pushing margins higher.
The firm also noted that Netflix's "current valuation multiple represents a substantial discount," suggesting there's room for the stock to re-rate higher.
Technical Picture: Improving, But Not Out of the Woods
On the charts, NFLX is showing signs of life after a rough 12 months that saw the stock fall 33.57%.
Shares are trading 8.6% above the 20-day simple moving average of $74.27 and 8.1% above the 50-day SMA of $74.60. That's a positive short-term signal.
But the stock is still 9.1% below its 200-day SMA of $88.73, and it remains under a death cross that formed back in December 2025. So the longer-term trend is still bearish, even as momentum improves.
The moving average convergence divergence (MACD) indicator is above its signal line, which suggests buying pressure is building. On the upside, resistance is near $91.50; on the downside, support is around $71.
What Analysts Are Saying
Wall Street remains bullish on Netflix overall. The stock has a Buy consensus rating and an average price target of $91.62.
Recent analyst actions have been mostly positive, though price targets have been trimmed:
- Goldman Sachs: Buy, lowered target to $94.00 (July 17)
- Baird: Outperform, lowered target to $90.00 (July 22)
- Morgan Stanley: Overweight, lowered target to $83.00 (July 17)
So while analysts see upside, they're also being a bit more cautious on the near-term outlook.
Price Action
At the time of publication, Netflix shares were trading at $80.74, up 3.82% on the day.
