22 Prominent Investors Hold Netflix Stock, With 14 Increasing Their Stakes Recently -- Including Bill Ackman's Pershing Square. Should You Follow Their Example?

Most Netflix (NASDAQ: NFLX) shares are held by exchange-traded funds and other financial institutions. The Vanguard Total Stock Market Index ETF (NYSEMKT: VTI) alone owns 3.2% of Netflix stock. That's par for the course, since Netflix is among the top 50 stocks on Wall Street by market cap.

But Netflix's popularity goes far beyond the funds required to hold it. Many billionaires and hedge funds that define their own stock-picking models are buying Netflix right now. Data from GuruFocus shows 22 of these funds owning Netflix stock in current ownership filings, and 14 of them increased their stakes recently.

For instance, Bill Ackman's Pershing Square Capital Management has focused on just 14 stocks -- and Netflix made the list. After closing Pershing Square's Netflix position in June 2022, Ackman rebuilt the position in Q2 of 2026.

Image source: Netflix.

Inside Ackman's Netflix thesis

Many funds simply make their trades and leave the reasons up for discussion. But you can buy stock in Pershing Square (OTC: PSHZF) itself. As a public company, Pershing Square explains some of its moves in financial filings.

Pershing Square calls Netflix "the dominant streaming platform" with twice as many subscribers as its two closest rivals combined. The firm likes Netflix's capital discipline and accelerating share buybacks. The ad-supported subscription tier used to add uncertainty to the business model, but is now a significant revenue stream.

So Pershing Square kept an eye on Netflix as its stock price fell more than 50% during the Warner Bros. Discovery (NASDAQ: WBD) buyout battle. It took action when the forward price-to-earnings multiple dropped from 40 to 21.

From here, Pershing Square expects Netflix to grow sales at an annual double-digit rate while keeping content costs growing at a slower pace. So the growth story continues, margins expand, and the stock should rise even if Wall Street doesn't expand Netflix's multiples again.

Netflix's growth and margin math checks out

Ackman's growth targets aren't outlandish. The Street consensus calls for 13% top-line growth in fiscal 2026, followed by an 11% increase in fiscal 2027. The analyst averages for 2026 are near the midpoint of the company's full-year forecast, issued in July. And Netflix's profit margins have indeed trended higher over the last three years:

NFLX Operating Margin (TTM) data by YCharts

Netflix catalysts nobody is modeling yet

The numbers don't tell the whole story, of course.

Netflix picked up a $2.8 billion breakup fee when the Warner Bros. Discovery deal fell through. Last year's K-Pop Demon Hunters wasn't just a hit; it is a franchise-building tentpole. The company is exploring mall-based entertainment centers, and I'm waiting for a Wall Street jump scare when Netflix decides to monetize its blooming video game catalog.

Oh, and the streaming video market is far from saturated. Streaming service viewing hours surpassed cable and broadcast combined in the spring of 2025, but only in the world's most mature streaming market, and Netflix accounted for only 7.5% of the grand total. If linear TV ever goes away, Netflix can still gain market share from rivals in the streaming world.

Ackman's analysis is a good start, and there's more to like after that. Netflix isn't just my largest holding, but one of my favorite stocks to buy and recommend in 2026.

Anders Bylund has positions in Netflix. The Motley Fool has positions in and recommends Netflix and Warner Bros. Discovery. The Motley Fool has a disclosure policy.