Ackman Calls Market 'Broken' While Backing Visa, MasterCard, Netflix

Bill Ackman has offered a divided assessment of US equities, labeling the stock market "broken" while at the same time pointing to Visa, MasterCard and Netflix as companies he favors. The Pershing Square founder's comments, reported by Investing.com, place a broad critique of how shares change hands next to praise for a handful of specific businesses.

The "broken" description fits a longer-running theme from the hedge fund manager, who has repeatedly questioned the mechanics of modern equity trading. Ackman has argued that the growing weight of passive investing and index funds means flows, rather than company fundamentals, increasingly set share prices. That view implies investors can own a rising market without the market properly rewarding or punishing individual companies.

The three names he highlighted run card networks and a streaming platform, businesses built on collecting fees or subscription revenue at scale rather than on heavy capital spending. That profile has long appealed to investors seeking predictable cash generation, and it sits comfortably alongside Ackman's preference for a concentrated portfolio of large, established franchises.

The contrast is the takeaway for investors: a public critic of market structure who is still willing to name individual stocks he likes. Ackman's remarks are closely followed given his profile, and the split message suggests dissatisfaction with how equities are traded rather than with the practice of picking them.