TLDR
- Bill Ackman’s Pershing Square unveiled a $2 billion Meta position representing 10% of the fund’s total capital
- The investment was made in November at $625 per share as Meta stock declined 16% on AI spending concerns
- Pershing views Meta’s 22x forward P/E as discounted compared to tech rivals Alphabet, Apple, and Nvidia
- Meta announced plans for $115-135 billion in AI capital expenditures during 2026 in its January earnings report
- Ackman’s fund outperformed the S&P 500 by nearly 7 percentage points in 2025 with a 20.9% return
Bill Ackman made a statement about Meta Platforms that Wall Street can’t ignore. Pershing Square announced a massive new stake Wednesday worth roughly $2 billion.
The position equals 10% of Pershing’s entire portfolio. That makes Meta one of Ackman’s largest holdings across his concentrated investment strategy.
Ackman didn’t hold back his enthusiasm. He called Meta “deeply discounted” and praised it as one of the world’s best businesses trading below fair value.
The stock hasn’t won many fans lately. Meta shares fell 16% over the past 12 months as investors worried about spending plans.
The company laid out ambitious AI infrastructure goals in January. Meta expects to spend $115 billion to $135 billion on AI development in 2026.
That figure spooked many market participants. Questions arose about returns on such massive capital allocation.
Pershing Square takes the opposite stance. The fund sees AI spending as strategic investment that will generate outsized returns over time.
What Makes Meta Attractive Now
Valuation drives much of Ackman’s interest. Meta trades at just 22 times its projected earnings for the next year.
Compare that to other technology leaders. Alphabet, Apple, and Nvidia all command premium valuations above Meta’s multiple.
Pershing believes AI will revolutionize Meta’s advertising engine. Smarter content delivery and precision targeting should boost ad revenue substantially.
The presentation pointed to additional growth avenues. AI-powered business solutions and wearable technology could expand Meta’s reach beyond social platforms.
“We believe Meta’s current share price underappreciates the company’s long-term upside potential from AI,” Pershing declared. The fund clearly sees opportunity where others see risk.
Investment Timing and Strategy
Pershing Square maintains a focused portfolio approach. The fund owned just 13 stocks when 2025 ended.
Each position carries real weight in the portfolio. Ackman makes big bets only when conviction runs high.
November marked the entry point for Meta shares. Pershing accumulated stock at an average price of $625 per share.
Early returns looked promising. Meta climbed 11% from Pershing’s purchase through the end of December.
The stock added 3% more in early 2026. Ackman’s position showed profits before the public disclosure hit the market.
Meta joined Amazon and Hertz as new Pershing additions last year. The fund clearly saw value opportunities in 2025’s volatile conditions.
Results Support the Method
Pershing Square crushed benchmarks in 2025. The fund’s net asset value jumped 20.9% for the year.
That trounced the S&P 500’s performance. The index returned 14%, falling nearly seven percentage points short of Pershing’s gain.
Those results validate Ackman’s concentrated bet philosophy. Picking a few winners beats owning everything when you get it right.
Technology dominates Pershing’s current holdings. The fund maintains large positions in Meta, Alphabet, and Amazon.
Pershing wrote that “concerns around META’s AI-related spending initiatives are underestimating the company’s long-term upside potential from AI.” The firm bought the stake in the fourth quarter of 2025 at an average cost of $625 per share.
