Pershing Square Holdings, Ltd. Releases Letter to Shareholders

In a letter to shareholders, Bill Ackman reveals that he has sold the entirety of his fund’s investment in Netflix that he made in January, saying “changes in the company’s future subscriber growth can have an outsized impact on our estimate of intrinsic value,” and that “While we believe these business model changes are sensible, it is extremely difficult to predict their impact on the company’s long-term subscriber growth, future revenues, operating margins, and capital intensity.”