Ackman stated in a letter to investors that Netflix has already won the streaming wars with over 325 million subscribers, nearly double its two biggest rivals combined. He believes the stock became undervalued after its forward earnings multiple fell from over 40x to about 21x, primarily due to concerns over slowing growth. Ackman highlighted Netflix's strong monetization power through its new Ads Suite and competitive pricing, which he expects to drive earnings growth in the low-to-mid teens even with revenue deceleration. Netflix shares are down approximately 35% over the past year and 15% year-to-date.