Ackman's Pershing Square Bets Big on Meta, Calling It a Bargain Amid AI Spending Fears

Pershing Square Capital Management, the hedge fund led by Bill Ackman, disclosed a significant new investment in Meta Platforms this week. The stake, representing 10% of the fund's capital at the close of 2025, was detailed in its annual investor presentation.

The fund directly addressed Wall Street's primary concern about the social media giant: its massive spending on artificial intelligence. Meta forecasted 2026 AI capital expenditures between $115 billion and $135 billion, a commitment that has contributed to a 16% slide in its share price over the past year. Pershing Square's presentation argued this reaction is shortsighted.

"We believe Meta's current share price underappreciates the company's long-term upside potential from AI," the fund stated, characterizing the stock as "deeply discounted." The presentation highlighted that Meta trades at 22 times its projected earnings for the coming year, a lower valuation than peers like Alphabet, Apple, and Nvidia, despite what Pershing sees as comparable AI-driven growth potential.

The Meta position was established in the fourth quarter. It rounded out a series of major 2025 investments that also included previously disclosed stakes in Amazon and Hertz. Pershing Square outperformed the broader market last year, with its net asset value climbing 20.9% against the S&P 500's 14% gain.

Source: CNBC