Meta Stock Receives $2 Billion Investment from Billionaire Bill Ackman

TLDR

• Bill Ackman’s Pershing Square unveiled a $2 billion Meta investment worth 10% of the fund’s portfolio
• The hedge fund bought shares in November at $625 each, calling Meta undervalued despite market concerns
• Meta stock fell 16% over 12 months as the company announced $115-135 billion in AI spending for 2026
• Pershing argues Meta’s 22x forward P/E ratio is cheap compared to tech peers like Alphabet and Nvidia
• The fund delivered 20.9% returns in 2025, outperforming the S&P 500’s 14% gain by nearly 7 points

Billionaire hedge fund manager Bill Ackman disclosed a major bet on Meta Platforms Wednesday. His firm Pershing Square revealed the position during its annual investor meeting.

Meta Platforms, Inc., META

The stake accounts for 10% of Pershing’s entire portfolio. Based on the fund’s size, that represents approximately $2 billion invested in the social media company.

Ackman made his bullish case clear in the presentation. He called Meta’s valuation “deeply discounted” relative to its long-term AI potential.

The stock has faced headwinds lately. Meta shares declined 16% over the trailing 12-month period as spending concerns mounted.

Meta outlined aggressive AI investment plans in its January earnings report. The company expects to pour $115 billion to $135 billion into AI infrastructure this year.

Wall Street reacted nervously to those numbers. Many investors questioned whether such heavy spending would pay off.

Pershing Square disagrees with that skepticism. The fund believes critics are missing the bigger picture on AI’s impact.

Why Pershing Sees Value

The valuation argument forms the core of Ackman’s thesis. Meta currently trades at 22 times its projected next-12-month earnings.

That multiple looks attractive compared to other tech leaders. Companies like Alphabet, Apple, and Nvidia all trade at higher forward earnings ratios.

Pershing expects AI to supercharge Meta’s advertising platform. Enhanced content recommendations and smarter ad targeting could drive meaningful revenue growth.

The fund also sees upside beyond traditional ads. AI-powered tools for businesses and new wearable products represent untapped opportunities.

Strategic Bet Reflects Ackman’s Style

Pershing Square runs a concentrated portfolio. The fund owned just 13 positions at the end of last year.

That focused approach means each investment carries weight. Ackman only buys when he sees compelling value and long-term potential.

The Meta purchase happened in November. Pershing paid an average price of $625 per share when building the position.

That entry point worked out well initially. Meta stock jumped 11% from the purchase date through December 31, 2025.

Shares gained another 3% in the first weeks of 2026. Ackman’s position showed paper profits before the public announcement.

Pershing also picked up stakes in Amazon and Hertz during 2025. The fund clearly hunted for opportunities in last year’s market volatility.

Performance Supports the Strategy

Pershing Square posted strong results in 2025. The fund’s net asset value rose 20.9% for the full year.

That crushed the broader market. The S&P 500 returned 14% in 2025, trailing Pershing by almost seven percentage points.

The outperformance validates Ackman’s selective investment approach. His willingness to make big bets on conviction ideas has paid off.

Tech holdings feature prominently in the portfolio. Beyond Meta, Pershing owns significant positions in Alphabet and Amazon.

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