Bill Ackman Targets Netflix Amid Claims of Broken Market
- Bill Ackman says speculative trading has left the stock market broken.
- Pershing Square disclosed a new position in Netflix in August 2026.
- Netflix shares are trading at approximately $66.02, near a 52-week low.
- Ackman is pushing for Fannie Mae and Freddie Mac to exit conservatorship.
- Pershing Square holds over 200 million shares of Fannie Mae and Freddie Mac.
During an appearance on CNBC’s "Squawk Box," Ackman said he feels the markets are broken every few days.
He warned that speculative trading leads to wild price swings and creates a casino-type environment. Ackman said the market is back to levels seen when there was 95% leverage.
He stated that short-term speculation hurts investors, particularly those treating the market as a get-rich-quick scheme through sports betting, perpetual futures, and one-day leveraged vehicles. This volatility is not good for the country, the economy, or society, according to Ackman.
Pershing Square’s third-quarter letter, dated November 2, blamed this volatility on a reduction in float from indexation and more capital controlled by leveraged short-term investors.
He said this situation is good for Pershing Square long term, even if it is not good for the country.
Pershing Square builds position in Netflix
Pershing Square established a position in Netflix in August. Ackman previously sold roughly $400 million of Netflix and said he would stay away from the stock.
The fund is now building a new position while trailing the market. Ackman identified Netflix as one of the businesses he is most bullish on, alongside Visa and Mastercard.
Netflix shares trade at about half their peak, according to an analysis from November 5, 2026.
Netflix financial performance and market valuation
As of November 5, 2026, the stock traded at $66.02, which is slightly above its 52-week low of $61.99. Year-to-date, the share price fell 33%.
The company projects 11.5% revenue growth for the fourth quarter of 2026. Through September 2026, Netflix earned $2.90 per share, with fourth-quarter guidance at $0.67. This brings the annual total to about $3.57 per share, or roughly $3.10 excluding a termination-fee boost. At a share price of $66, the stock trades at 18 times the 2027 earnings estimate.
Analysts set a price target of $76.26, suggesting a potential 22.9% gain from current levels. On the Pluang platform, 71% of orders for the company are buy orders, while 29% are sell orders. Recent growth stems from the introduction of live NFL games, new advertising technology, and partnerships with Disney. Risks include potential delays in the rollout of new ad products and soft margin guidance.
Pershing Square holdings in Microsoft, Amazon, and others
Bill Ackman identified Microsoft, Amazon, Visa, and Mastercard as quality companies that offer buying opportunities during periods of market volatility. He characterized Visa and Mastercard as being among the "greatest" businesses in the world.
Pershing Square acquired Microsoft stock earlier in 2026 during the "SaaSpocalypse". The firm also purchased Amazon shares after the price declined following the introduction of tariffs by President Donald Trump.
Pershing Square bought Google stock after its shares moved "massively" following the launch of ChatGPT. Ackman said these market dislocations provided the chance to acquire such companies at discounted prices.
Ackman calls for end to Fannie Mae and Freddie Mac conservatorship
Pershing Square CEO Bill Ackman argued on live television on November 3, 2026, that Fannie Mae and Freddie Mac should be released from government conservatorship, a state they have been in since September 2008. Ackman stated, "The reason why it’s not being touched right now is, you know, midterms," and referred to the companies as "massive, enormously profitable institutions". He added, "In conservatorship, the president can do anything".
A Pershing Square shareholder letter dated November 2, 2026, claims a release from conservatorship could be achieved by the President using executive authority without Congressional involvement. The letter warns that the stakes in the companies carry a "greater risk of a permanent loss of capital". Treasury Secretary Scott Bessent estimated the timing for an exit at "next year, the year after," provided that the spread on agency mortgages over Treasuries "does not increase".
Treasury Secretary Mnuchin previously outlined an agreement allowing Fannie Mae and Freddie Mac to retain their earnings instead of sending profits to the Treasury.
Fannie Mae and Freddie Mac stock performance and risks
Both companies trade over the counter under the symbols FNMA and FMCC, which can result in thin trading and lagging quotes.
Pershing Square holds more than 200 million shares of Fannie Mae and Freddie Mac combined. Fannie Mae is up 76.5% from its October 14, 2026, close of $3.15, while Freddie Mac is up 71.2% from its $2.92 close on the same date. The last four trading sessions added 34% to Fannie Mae's value and 37% to Freddie Mac's value.
A table in the Pershing Square letter indicates that both stocks were down 61% in 2026 through September 30.
In the third quarter, Pershing Square reported $47.19 million in management fees but no performance fees, with total revenue of $56.60 million missing the $75.47 million estimate. Fannie Mae closed at $4.15 on October 28, 2026, and a drop below this level would indicate a reversal of the current rally.
Regulatory and industry challenges for Netflix
Cinemark CEO Sean Gamble has criticized the release strategy used by Netflix for the film.
This measure could generate approximately €10 billion in revenue.
Frequently Asked Questions
- Bill Ackman Says Long-Term Investors Can Benefit From a Broken Market. Here's the Price I'd Pay for Netflix Stock. (fool.com)
- Fannie Mae Jumped 9% and Freddie Mac 7% on Election Day as Ackman Pushes for an Exit - 24/7 Wall St. (247wallst.com)
- Bill Ackman warns of 'casino' stock market trading (cnbc.com)
- Why Bill Ackman Says He Feels Like “Markets Are Broken” Casinos (finance.yahoo.com)
- Ackman calls stock market "broken" but touts Visa, MasterCard and Netflix (investing.com)
- Netflix posts record profits and buys back $5B ... | Pluang (pluang.com)
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