Netflix

Co-CEO Ted Sarandos admits Netflix is currently not growing quickly enough and has trouble retaining subscribers after the first season; the stock has lost about 24% since the start of the year. Management is expanding the offering: roughly five percent of the $20 billion content budget is going into live formats such as sports, video podcasts and creator content, and large-scale theatrical releases are planned. Major acquisitions are off the table for now; growth is expected to be organic. To cut costs, Netflix is investing in technology and AI (including the purchase of InterPositive for $587 million), which is already used in about 300 productions. » Altro su deraktionaer.de

Bill Ackman’s Pershing Square bought roughly $1 billion of Netflix, returning to the stock after a reported $400 million loss on a 2022 position. The thesis hinges on Netflix’s ad tier, which management guided to $3 billion in 2026 and has driven strong sign-ups and advertiser growth. Risks include slowing engagement (viewing hours +2% H1 2026), rising content costs (~10% in 2026) and mixed analyst sentiment including a Wells Fargo Underweight rating. » Altro su finance.yahoo.com

Pershing Square holds a roughly $934 million Netflix position that is down about 21% this year, while Wells Fargo downgraded the stock to underweight and cut its price target to $57, implying nearly 21% further downside. The downgrade cites weakening engagement and a lack of big original hits as central risks, noting Netflix's changes to its engagement reporting and experiments with formats like video podcasts. Bill Ackman's team argues long-form, high-quality content remains costly to produce and defends Netflix's positioning, leaving the stock trading at a lower multiple than its five-year average. » Altro su finance.yahoo.com