Billionaire investor Bill Ackman has taken a new stake in Netflix, while 24/7 Wall St. issued a 12-month price target of $177.27, implying 127.94% upside from the current price of $77.77. Pershing Square disclosed a Netflix position representing roughly 4.9% of Pershing Square USA's portfolio, despite Ackman's prior Netflix trade costing him $400 million in 2022. Netflix reported second-quarter 2026 revenue up 13.4% to $12.56 billion, EPS of $0.80 beating consensus, and operating margin expanding to 33.4%, with a record $4.7 billion in buybacks and $27.1 billion still authorized. The bull case of $190.54 rests on advertising revenue roughly doubling to $3 billion in 2026, while the bear case of $141.66 cites decelerating revenue growth and a 32.7% year-over-year drop in free cash flow. Netflix trades at 29 times earnings versus Spotify's 48 times on nearly identical revenue growth, and its return on equity of 42.76% far exceeds Disney's 12%.
Netflix IncAckman's new stake and 24/7 Wall St.'s $177 target imply upside, with strong Q2 earnings and buybacks.
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