Does Billionaire Bill Ackman Know Something Wall Street Doesn’t? He Invested in These 2 Stocks That Have Dropped 33% and 18% Over the Past Year Prosper Junior Bakiny, The Motley Fool Sun, August 23, 2026 at 2:35 PM PDT 5 min read NFLX UBER ^GSPC NVDA Bill Ackman, the founder and CEO of Pershing Square Capital Management, has an impeccable record, as his firm has outperformed the S&P 500 over the past couple of decades. That's why every move he and his team make is carefully scrutinized. And during the second quarter, Pershing Square Capital Management made several noteworthy stock purchases. For instance, it bought shares of Netflix (NASDAQ:NFLX) and doubled down on Uber Technologies (NYSE:UBER). What's noteworthy about these purchases is that both stocks have lost significant value over the past year: Netflix is down 33%, while Uber has declined 18%. Should investors follow Ackman's lead and load up on these stocks on the dip? Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue Image source: Getty Images. 1. Netflix Netflix has faced slower revenue growth, unimpressive guidance, and a failed blockbuster acquisition. Further, the company reported that it will release its "What We Watched" engagement report once a year starting in 2027, rather than twice annually. This change comes at a time when Netflix is facing increased scrutiny over whether it can continue to monetize its audience enough to maintain healthy top-line growth, so many investors aren't exactly thrilled about it. Is there any reason to remain bullish on the company's prospects? Yes, there is. Let's remember that several years ago, the streaming specialist faced significant challenges, notably growing competition and password-sharing. But Netflix adapted, launched new initiatives (such as a low-priced ad-supported tier), and overcame these obstacles. The past is no guarantee of the future, but what this episode taught us is that Netflix can adapt to a changing environment. The company still boasts one of the deepest ecosystems in streaming, which provides it with ample data to study viewers' habits and make adjustments as needed. Netflix is currently pursuing various opportunities to boost engagement on its platform. For instance, the company is looking to double down on sports streaming, a vast and highly lucrative market it has only begun to tap. The company is also reportedly considering launching live TV, an initiative that has proven successful for other streaming leaders, most of whom don't have Netflix's large ecosystem and brand name. Meanwhile, the company continues to ramp up advertising and still expects ad revenue to reach $3 billion this year, double what it was in 2025. Between Netflix's vast remaining opportunities in streaming and in its ad business, the stock could still deliver solid returns over the long run as it navigates recent headwinds. The stock looks like a great...
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