Bill Ackman, founder and CEO of Pershing Square Capital Management, revealed that his firm has built a significant stake in Meta, describing the company’s current valuation as “deeply discounted” relative to its long-term potential. The disclosure came in Pershing Square’s annual investor presentation, which highlighted the fund’s strategic positioning in key technology companies. As of the end of 2025, the Meta position accounted for 10% of Pershing Square’s total capital. The fund added the stake during the fourth quarter of the year, joining previous investments in Amazon and Hertz, both of which were previously disclosed. Ackman and his team believe Meta’s current share price fails to reflect the transformative impact AI is expected to have on the company’s future earnings. Despite a 16% decline in Meta’s stock over the past 12 months—driven by investor concerns over aggressive AI spending—the fund sees this as an opportunity. Meta’s fourth-quarter earnings report in January projected AI-related capital expenditures between $115 billion and $135 billion for 2026, a massive commitment that has raised eyebrows among some market observers. Pershing Square argues that these concerns are misplaced. The fund emphasized that Meta is currently trading at a forward price-to-earnings ratio of 22 based on projected earnings over the next 12 months. This valuation, the firm noted, is notably low compared to peers like Alphabet, Apple, and Nvidia, all of which have higher forward P/E multiples despite similar or less certain growth trajectories. “Concerns around META’s AI-related spending initiatives are underestimating the company’s long-term upside potential from AI,” the presentation stated. The fund believes Meta’s dominance in digital advertising, combined with its growing leadership in AI infrastructure and applications, positions it for sustained outperformance. Pershing Square’s strong performance in 2024—where its net asset value rose 20.9%, outpacing the S&P 500’s 17% gain—further underscores confidence in its current strategy. The Meta investment is a central part of that approach, reflecting a bet on the company’s ability to turn massive AI investments into long-term value for shareholders.