Bill Ackman's Pershing Square Capital Management has added Netflix, Visa, and Mastercard to its investment portfolio, according to the firm's most recent 13-F regulatory disclosure. The three acquisitions bring the activist investor's total holdings to 14 stocks.
Netflix represents a $934 million position, while Visa and Mastercard each account for approximately $1.1 billion in market value. The fund's largest holdings include Uber at $2.5 billion, Microsoft at $2.3 billion, and Amazon at $2.0 billion.
Netflix's Valuation Shift
Netflix shares have declined approximately 32% over the trailing twelve months. The streaming company currently trades at a price-to-earnings multiple of 26, compared to its five-year historical average of 36.
Netflix maintains a global subscriber base exceeding 300 million and has introduced advertising-supported subscription options as an additional revenue stream. The company continues pursuing international expansion opportunities.
Visa and Mastercard: Established Payments Leaders
Visa trades at a P/E multiple of 33, approximately matching its five-year average of 32. The company's shares have appreciated 17% year-over-year and delivered average annual returns approaching 22% over the past fifteen years.
Mastercard commands a P/E ratio of 33, modestly below its five-year average of 37. The company has posted average annual returns of 22% over fifteen years, though recent performance shows 1.6% appreciation over the past year.
Both payment processors handle the overwhelming majority of worldwide electronic payment transactions and benefit from the ongoing digitization of financial commerce. However, both face emerging competitive risks from digital currencies and potential regulatory scrutiny given their duopolistic market position.
Pershing Square's Track Record
Since its 2004 inception, Pershing Square has achieved cumulative net returns of 2,644%, translating to approximately 16% in annualized gains. This performance significantly exceeds the stock market's 11% average during the same timeframe.
