Bill Ackman, founder and CEO of Pershing Square Capital Management, attends the Milken Conference 2025 in Beverly Hills, California, U.S., May 6, 2025.
Mike Blake | Reuters
Bill Ackman’s Pershing Square revealed a sizable stake in Meta on Wednesday.
“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,” stated the fund’s annual investor presentation.
The position amounts to 10% of Pershing’s capital as of the end of 2025.
Meta shares are off by 16% over the last 12 months on fears it is spending too much on artificial intelligence. The company in its fourth-quarter earnings report in January projected AI-related capital expenditures to total in the range of $115 billion to $135 billion in 2026.
“We believe concerns around META’s AI-related spending initiatives are underestimating the company’s long-term upside potential from AI,” stated the Pershing presentation.
Pershing noted that Meta currently trades at a 22 times its projected earnings over the next 12 months, cheap considering how much AI is set to rev up future earnings growth. Alphabet, Apple and Nvidia all have higher forward P/Es.
Pershing added the stake in the fourth quarter. The fund bought positions in Amazon, Hertz and Meta in 2025, according to the presentation with the Amazon and Hertz stakes previously disclosed.
Last year, Pershing outperformed the S&P 500, with the fund’s net asset value increasing by 20.9% vs. the index’s 17% return.
