Bill Ackman has sold his stake in Netflix at about a US$400mn loss just months after acquiring the position, in yet another blow to the streaming company whose market value collapsed on Wednesday following a decline in subscribers.
The New York billionaire investor bought 3.1mn shares in Netflix, the world’s largest streaming platform, in late January at roughly US$360 per share. The shares had tanked but he said this was a good time to buy for the long term. His purchase cost him US$1.1bn.
Ackman’s decision to cut his losses closed a painful 24 hours for Netflix, which lost close to 40% of its market value, a decline of almost US$60bn, after it revealed that its once-blistering subscriber growth had gone into reverse.
Thoughts of a Cynical Investor 