TLDR
- Pershing Square disclosed a $2 billion Meta stake representing 10% of the fund’s capital at year-end 2025
- Ackman initiated the position in November at $625 per share, viewing the stock as undervalued despite AI spending fears
- Meta trades at 22x forward earnings, below Alphabet, Apple, and Nvidia despite projected AI revenue upside
- The company plans $115-135 billion in AI capital expenditures for 2026, which Pershing views as growth investment
- Pershing Square returned 20.9% in 2025, beating the S&P 500’s 14% return by nearly seven percentage points
Bill Ackman made waves Wednesday by revealing a major new position in Meta Platforms. Pershing Square disclosed the stake in its annual investor presentation.
The investment amounts to 10% of the fund’s total capital. That translates to roughly $2 billion based on Pershing’s historical asset levels.
Ackman didn’t mince words about his view. He called Meta “deeply discounted” and described it as one of the world’s greatest businesses trading below its true value.
Meta shares have struggled recently. The stock dropped 16% over the past year as investors worried about massive AI spending plans.
The company announced plans to spend between $115 billion and $135 billion on AI infrastructure in 2026. That eye-popping figure rattled some shareholders.
But Pershing Square takes the opposite view. The firm believes the market is underestimating what AI will do for Meta’s business over time.
The Valuation Case for Meta
Ackman points to Meta’s current price-to-earnings ratio as evidence of opportunity. The stock trades at 22 times forward earnings estimates.
Compare that to other tech giants. Alphabet, Apple, and Nvidia all command higher valuation multiples.
Pershing argues Meta deserves better. The fund sees AI transforming Meta’s advertising engine through better content recommendations and more targeted ads.
The presentation also mentioned potential new revenue sources. AI-powered business tools and wearable devices could open fresh growth channels beyond social media.
“Meta’s business model is one of the clearest beneficiaries of AI integration,” Pershing stated. That’s high praise from a notoriously selective investor.
Ackman’s Investment Strategy
Pershing Square is known for concentrated positions. The fund held only 13 stocks at the end of 2025.
That approach requires high conviction. Ackman clearly believes Meta fits his criteria for a long-term winner.
The fund bought Meta shares in November at an average cost of $625 each. That timing proved smart initially.
Meta stock climbed 11% from that purchase date through year-end 2025. It added another 3% in early 2026 before the disclosure.
Pershing also added Amazon and Hertz to its portfolio last year. The firm clearly sees value in select large-cap names.
Track Record Backs the Call
Pershing Square crushed the market in 2025. The fund gained 20.9% compared to the S&P 500’s 14% advance.
That outperformance gives Ackman credibility when making bold calls. His concentrated strategy has worked well over time.
The Meta position joins other tech holdings like Alphabet and Amazon. Pershing clearly favors companies with strong competitive moats and growth potential.
Pershing stated that concerns about Meta’s AI spending “are underestimating the company’s long-term upside potential from AI.” The fund views current weakness as a buying opportunity rather than a red flag.
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