US Stock Market Move | Bill Ackman buys back into Netflix (NFLX.US), stock rises nearly 5%.

On Thursday, Netflix (NFLX.US) rose nearly 5% in early trading, reaching $77.50. In news, billionaire investor Bill Ackman, through his managed fund Pershing Square, has once again purchased shares of Netflix. This marks his second investment in the streaming giant. In its latest investment report, Pershing Square clearly stated: "Netflix has essentially won the streaming wars." Pershing Square believes that short videos mainly siphon viewers from traditional television and weaker streaming services, rather than from Netflix; the risks posed by AI are also overestimated. The production costs for high-quality long videos remain high, while Netflix's scale advantages, AI-driven recommendation systems, and ad targeting may actually enhance its competitiveness. Looking ahead, the firm expects Netflix's revenue to maintain double-digit growth, with content cost increases lagging behind revenue, driving continuous margin expansion. Coupled with share buybacks, earnings per share are expected to grow at a compound rate of nearly 20% annually. The current valuation represents a significant discount for such a strong growth and dominant-position company.