Bill Ackman misses out on $1.6 billion selling Netflix stock early

Core Perspective - Bill Ackman, CEO of Pershing Square Capital Management, made a significant loss by selling Netflix stock early, missing out on substantial potential gains [1][5][8] Investment Strategy - Ackman is an activist investor who takes a hands-on role in companies he invests in, such as encouraging management reform at Chipotle Mexican Grill and pushing for Wendy's to spin off Tim Hortons [2] Netflix Investment Details - Pershing Square spent approximately $1.1 billion to acquire over 3.1 million Netflix shares from January 21 to January 26, becoming a top 20 shareholder in the streaming business [3] - Netflix stock plummeted to $174 in April 2022, with the company posting a net loss of 200,000 subscribers for the first time since 2011 and announcing plans for an ad-supported tier and crackdown on password sharing [3] Early Exit and Losses - Ackman sold his entire Netflix stake on April 20, 2022, resulting in a $400 million loss [4][5] - Had Pershing Square held onto its stake, the original $1.1 billion investment would have grown to approximately $2.74 billion by January 23, 2025, representing a 149.12% increase from the initial average purchase price of $383.69 to $955.85 [6][8] - Ackman missed out on roughly $1.64 billion in potential profits by selling early [8]