Netflix shares rise 8% as new shareholder gives vote of confidence            

The company's shares rose by the most in a year after hedge fund magnate Bill Ackman acquired more than 3.1m shares

Netflix added 18m customers last year, the fewest since 2015, and forecast the slowest start to a year in at least a decade.

Netflix shares rose by the most in a year after hedge fund magnate Bill Ackman acquired more than 3.1m shares in a vote of confidence following a recent collapse in the streaming giant’s stock price.

Mr Ackman’s firm, Pershing Square Capital Management, is now among Netflix’s top 20 shareholders, the investor said in a tweet earlier this week, and Netflix shares jumped by more than 8% to value the streaming giant at $172.3bn (€151.9bn). 

Netflix shares had tumbled by almost 50% from their November high. The decline accelerated last week after the company said growth was slowing and it wasn’t sure why. The company added 18m customers last year, the fewest since 2015, and forecast the slowest start to a year in at least a decade.

Netflix leadership has expressed confidence in its long-term vision. The world’s most popular streaming service has a leading position in almost every major market.

Mr Ackman echoed these sentiments in a letter to investors attached to his tweet on Wednesday.

“The opportunity to acquire Netflix at an attractive valuation emerged when investors reacted negatively to the recent quarter’s subscriber growth and management’s short-term guidance,” Mr Ackman wrote. 

He cited the company’s favourable characteristics, including its subscription-based business model and its management team. “We are all-in on streaming.”  

• Bloomberg