TLDR
- Bill Ackman’s Pershing Square revealed a 10% stake in Meta Platforms worth roughly $2 billion, calling it “deeply discounted” for one of the world’s greatest businesses
- The position was initiated in November at $625 per share, as Meta stock fell 16% over 12 months on concerns about AI spending
- Meta projects $115-135 billion in AI capital expenditures for 2026, which Pershing believes will drive long-term earnings growth
- Meta trades at 22x forward earnings, cheaper than tech peers Alphabet, Apple, and Nvidia despite AI growth potential
- Pershing Square outperformed the S&P 500 in 2025 with 20.9% returns versus the index’s 14% gain
Bill Ackman just made a big statement about Meta Platforms. His hedge fund Pershing Square revealed a massive new position in the social media giant on Wednesday.
The stake represents 10% of Pershing’s total capital as of the end of 2025. That works out to approximately $2 billion based on the firm’s previous disclosures.
Ackman isn’t shy about his reasoning. “We believe Meta’s current share price underappreciates the company’s long-term upside potential from AI and represents a deeply discounted valuation for one of the world’s greatest businesses,” Pershing stated in its annual investor presentation.
Meta stock has dropped 16% over the past 12 months. Investors have grown nervous about the company’s aggressive spending on artificial intelligence initiatives.
The company outlined plans in its January fourth-quarter earnings report to spend between $115 billion and $135 billion on AI-related capital expenditures in 2026. That’s a massive number that has spooked some shareholders.
But Pershing Square sees it differently. The fund believes investors are making a mistake by focusing too much on near-term spending and not enough on long-term potential.
Why Ackman Sees Value in Meta
Pershing Square points to Meta’s current valuation as a key reason for the investment. The stock trades at 22 times projected earnings over the next 12 months.
That’s actually cheap compared to other tech giants. Alphabet, Apple, and Nvidia all carry higher forward price-to-earnings ratios.
The firm thinks AI will supercharge Meta’s core advertising business. Better content recommendations and more personalized ads could drive revenue growth for years to come.
Pershing also sees opportunities beyond ads. AI digital assistants for businesses and new wearable products could open up entirely new revenue streams.
“Meta’s business model is one of the clearest beneficiaries of AI integration,” the firm said in its presentation. That’s a strong endorsement from one of the most successful hedge fund managers on Wall Street.
Ackman’s Track Record and Timing
Ackman is known for making concentrated bets on companies he believes in. Pershing Square held just 13 different positions at the end of 2025.
Other major tech holdings include Alphabet and Amazon. The firm clearly likes big tech companies with strong competitive positions.
Pershing bought Meta shares in November at an average price of $625 per share. The timing worked out well initially. Meta stock gained 11% from that purchase date through the end of 2025.
The stock added another 3% in early 2026. That means Ackman’s position was already profitable before the public disclosure.
Pershing Square had a strong 2025 overall. The fund’s net asset value increased 20.9% for the year. That beat the S&P 500’s 14% return by nearly seven percentage points.
The Meta position joins other new 2025 investments including Amazon and Hertz. Pershing initiated the Meta stake in the fourth quarter of the year.
The fund views concerns about Meta’s AI spending as shortsighted. “We believe concerns around META’s AI-related spending initiatives are underestimating the company’s long-term upside potential from AI,” Pershing stated in its presentation.
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