Bill Ackman Cancels Netflix, Taking $400 Million Loss As Shares TankNearly three months after revealing a stake in Netflix Inc., Pershing Square leader
Bill Ackman disclosed earlier this week he sold out of the
3.1 million-share position following news it lost subscribers for the first time in a decade.
In a letter to shareholders, the billionaire activist guru said the New York-based hedge fund’s year-to-date returns were impacted by four percentage points as a result of the
loss on its $1.1 billion investment. Overall, the bet cost Pershing Square an estimated $400 million.
The Los Gatos, California-based streaming service’s stock plunged after reporting on Tuesday in its
first-quarter 2022 results that it lost 200,000 subscribers. This was not completely unexpected, however;
the company warned investors in January that subscriber growth would slow substantially in the first three months of the year and provided mediocre guidance.
