Bill Ackman’s $3B Portfolio Bet: Why He’s Betting on Netflix, Visa, and Mastercard Right Now

(SeaPRwire) –   By: Christian Pierce
The U.S. equity market has been stuck in a listless holding pattern this year. Investors are hunting for undervalued stocks that aren’t caught up in the latest AI hype cycle. Bill Ackman’s latest 13-F filing offers a clear blueprint for where smart capital is moving next.
Pershing Square Capital Management has delivered 16% average annual returns since 2004, beating the S&P 500’s 11% average over the same period. The fund’s existing largest positions include Uber at $2.5 billion, Microsoft at $2.3 billion, and Amazon at $2.0 billion. Its new portfolio additions include $934 million in Netflix, plus $1.1 billion each in Visa and Mastercard. Netflix shares are down 32% over the past year, trading at a P/E ratio of 26, well below its five-year average of 36. GuruFocus gives Netflix a GF Score of 90 out of 100, with perfect marks for profitability and growth. Its estimated intrinsic value is $101.08, compared to a recent trading price near $79.84. The company has over 300 million global subscribers and has launched ad-supported tiers to boost revenue. But short-term pressure remains: the stock’s momentum score is just 2 out of 10, and insider selling topped $49 million over the past three months. Visa trades at a P/E of 33, close to its five-year average of 32. It’s up 17% over the past year, with a 15-year average annual return of nearly 22%. Mastercard also trades at a P/E of 33, slightly below its five-year average of 37. It’s up just 1.6% over the past year, matching Visa’s 15-year average annual return of 22%. Both firms process the bulk of global electronic payments, but face two key risks: crypto competition and increased regulatory scrutiny.
Ackman’s picks aren’t just a grab for cheap valuations. They’re a bet on two separate long-term growth stories that fly under the retail investor radar. For Netflix, the ad-supported tier is a quiet fix for earlier revenue stagnation. The stock’s 21% discount to intrinsic value is too large to ignore, even with short-term insider selling and momentum issues. For Visa and Mastercard, the global shift to digital payments is a multi-decade tailwind. Crypto may pose a long-term threat, but it’s still a niche player for most consumers. Regulatory scrutiny is real, but the duo’s global infrastructure and scale make them nearly unassailable. What stands out most is that Ackman is avoiding the overhyped tech names that have driven this year’s market gains, instead doubling down on steady, cash-flow positive businesses.
Author bio: Christian Pierce, a chief financial columnist and markets commentator with 15 years covering global equity strategy and hedge fund activity.