Bill Ackman of Pershing Square just told his investors he bought Netflix (NASDAQ:NFLX). The stock is down about 35% over the past year and 15% so far this year.
Ackman said in his letter to investors that Netflix has already won the streaming wars. The company has more than 325 million subscribers, almost double what its two biggest rivals have put together. He thinks the stock got cheap after falling from more than 40x forward earnings down to about 21x, mostly on the collapsed Warner Bros. Discovery bid and worries about slowing growth.
So is he right?
The Bull Case
