TLDR
- Pershing Square revealed a $2 billion Meta stake equal to 10% of its assets under management at year-end 2025
- Ackman bought Meta shares in November at $625 per share, betting AI spending worries are overblown
- The stock trades at 22x forward earnings while peers Alphabet, Apple, and Nvidia command higher multiples
- Meta projects AI capital spending of $115-135 billion in 2026, which drove the 16% stock decline last year
- Pershing Square posted 20.9% gains in 2025 versus 14% for the S&P 500, validating its concentrated approach
Bill Ackman just put serious money behind Meta Platforms. The legendary investor’s Pershing Square disclosed the investment Wednesday in its annual presentation.
The position represents 10% of Pershing’s capital. That works out to about $2 billion given the fund’s historical asset base.
Ackman pulled no punches about his view on Meta’s prospects. He described the stock as “deeply discounted” for a business of this quality.
Meta has struggled with investor confidence recently. Shares dropped 16% over the past year on concerns about ballooning AI costs.
The company shocked markets with its 2026 spending forecast. Meta plans to invest between $115 billion and $135 billion in AI infrastructure this year.
Many shareholders questioned the wisdom of such heavy outlays. But Pershing Square sees the spending completely differently.
The fund believes the market is making a mistake. Pershing argues investors focus too much on near-term costs and miss the long-term revenue potential.
The Numbers Behind Ackman’s Conviction
Meta’s current valuation caught Pershing’s attention. The stock trades at 22 times estimated forward earnings.
That looks cheap in the tech sector. Alphabet, Apple, and Nvidia all carry higher price-to-earnings multiples despite Meta’s growth profile.
Pershing expects AI to transform Meta’s core advertising business. Better algorithms should improve content recommendations and make ads more effective.
The fund also highlighted opportunities beyond social media. AI assistants for businesses and consumer wearables could create new revenue streams.
“Meta’s business model is one of the clearest beneficiaries of AI integration,” Pershing stated in its materials. That represents a strong endorsement from one of Wall Street’s most respected voices.
How the Investment Played Out
Pershing Square operates with a concentrated strategy. The fund held only 13 different stocks at the end of 2025.
That means each position matters enormously. Ackman reserves capital for his highest-conviction ideas.
Pershing bought Meta shares throughout November. The average purchase price came in at $625 per share.
The timing worked in Ackman’s favor early on. Meta stock rallied 11% from the purchase date through year-end.
Shares tacked on another 3% in early 2026. The position showed gains before Pershing disclosed it publicly.
The Meta investment joined other 2025 additions like Amazon and Hertz. Pershing clearly found opportunities during last year’s market turbulence.
Strong Returns Back the Approach
Pershing Square delivered for investors in 2025. The fund gained 20.9% for the full year.
That beat the market handily. The S&P 500 returned 14%, trailing Pershing by almost seven percentage points.
The performance justifies Ackman’s selective style. Making big bets on a few companies requires conviction and research.
Technology stocks dominate the portfolio now. Pershing owns major positions in Meta, Alphabet, and Amazon.
Ackman wrote that investor “concerns around META’s AI-related spending initiatives are underestimating the company’s long-term upside potential from AI.” Pershing Square initiated the Meta position in the fourth quarter, purchasing shares at an average cost of $625 each as the stock traded down on AI spending fears.
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