{
  "id": 18315308,
  "title": "Bill Ackman Says Long-Term Investors Can Benefit From a Broken Market. Here's the Price I'd Pay for Netflix Stock.",
  "url": "https://urgent.news/2026/11/05/bill-ackman-says-long-term-investors-can-benefit-from-a-broken-market",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-05T13:52:02.000Z",
  "source": {
    "name": "Motley Fool",
    "slug": "motley-fool",
    "url": "https://www.fool.com/investing/2026/11/05/bill-ackman-says-long-term-investors-can-benefit-from-a-broken-market-here-s-the-price-i-d-pay-for-netflix-stock/?source=iedfolrf0000001"
  },
  "original_language": "en",
  "account": "Bill Ackman, founder of Pershing Square Capital Management, has expressed his opinion that markets currently seem \"broken\" with stocks trading at prices he finds puzzling. However, he believes long-term investors can benefit when they purchase shares at prices that are significantly lower than their true value.\n\nThe stocks Ackman is particularly bullish on include Netflix (NFLX), where he holds a stake he reported in August. Notably, Netflix's shares are now near $66, approximately half of the $133.91 record close they achieved in June 2025 after a 10-for-1 stock split.\n\nAlthough Netflix's third-quarter earnings per share rose 49% from a year ago to $0.87, and operating income increased 37% to around $4.5 billion, with an operating margin of 34.6%, these impressive figures were partly influenced by an expense linked to a dispute with Brazilian tax authorities. Excluding that expense, Netflix's operating income grew 15% year over year, and its operating margin improved by about 1 percentage point compared to the previous year.\n\nNetflix's buybacks have also contributed to its valuation, with the company spending $4.8 billion to repurchase 63.9 million shares in the third quarter, which is its largest buyback period ever. This action has reduced its diluted share count by around 3% year over year.\n\nHowever, Netflix's sales growth has been slowing, with revenue growth dropping from 17.6% in the fourth quarter of 2025 to 11.8% in the most recent quarter. Management's guidance for the fourth quarter remains around 11.5% growth. Additionally, the company has lowered its 2026 ad revenue forecast to around $2.7 billion from the previously anticipated $3 billion, citing slower-than-expected rollout of some ad features.\n\nIn the first quarter, Netflix earned $2.90 per share, which surpassed their own pre-quarter forecast of $0.76, and they are expecting another $0.67 per share in the fourth quarter. This translates to a total of approximately $3.57 per share for the year. Accounting for the $0.76 earnings forecast in the first quarter, their total earnings for 2026 would be around $3.10, representing a stand-in for the company's earnings without the Brazil-related fee.\n\nOn average, analysts expect Netflix to earn around $3.77 per share in 2027, which is about 22% higher than the current year's number without the fee. The stock currently costs about 18 times earnings on average for analysts' estimated 2027 earnings. While this may not be considered a bargain, Ackman suggests that paying about 16 times the 2027 earnings estimate, or around $60 a share, would be reasonable. He believes that if Netflix's 2027 earnings fell 10% below the estimate, a $60 stock would still cost approximately 18 times earnings, which is the same price-to-earnings ratio investors currently pay for the full estimate.",
  "summary": "His fund reported a stake in the streamer in August, and its shares now trade at around half their peak. Is that cheap enough?",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Nasdaq Markets",
        "title": "Bill Ackman Says Long-Term Investors Can Benefit From a Broken Market. Here's the Price I'd Pay for Netflix Stock.",
        "url": "https://urgent.news/2026/11/05/bill-ackman-says-long-term-investors-can-benefit-from-a-broken-market-18324515",
        "published": "2026-11-05T14:12:02.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}