Netflix surges after billionaire Bill Ackman says he is top 20 shareholder

Netflix Inc. NASDAQ: NFLX is trading higher Thursday morning after Pershing Square's Bill Ackman announced that he bought more than 3.1 million shares of the streaming giant, making Pershing Square a top 20 shareholder in the company.

Ackman expressed admiration for Netflix co-founder and co-CEO Reed Hastings and the remarkable company he and his team have built. In a letter to shareholders, Ackman stated that he began buying shares last Friday and has continued buying over the last several days.

The sell-off that took place after the company's latest quarterly results resulted in the opportunity to Buy Netflix shares at an attractive valuation.

Ackman said that Netflix is a primary beneficiary of the growth in streaming and the decline in linear TV.

NFLX Price Action: Netflix traded as low as $351.46 and as high as $700.98 over a 52 week period.

The stock was up 6.74% at $384.11 at the time of publication.