Bill Ackman's Pershing Square Reveals Massive Stake in Meta, Citing AI Upside and Deeply Discounted Valuation

[https://www.ibtimes.co.uk/bill-ackmans-pershing-square-reveals-massive-stake-meta-citing-ai-upside-deeply-discounted-1778432](https://www.ibtimes.co.uk/bill-ackmans-pershing-square-reveals-massive-stake-meta-citing-ai-upside-deeply-discounted-1778432)

Bill Ackman's Pershing Square revealed a massive stake in Meta Platform during the hedge fund's annual investor presentation. The stake in the Meta Stock amounts to 10% of Pershing's capital as of 2025-end.

'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,' according to the presentation.

The Meta stock is down 12.6% over the past six months amid fears of high AI spending with no equivalent revenue to show for. In its Q4 earnings report, Meta said it expects 2026 capital expenditures to go up to $135 billion in 2026, primarily due to AI spending, which is much higher than the $72.2 billion capex in 2025.

'We believe concerns around META's AI-related spending initiatives are underestimating the company's long-term upside potential from AI,' according to Pershing Square. The hedge fund highlighted that Meta is trading at 22 times its forward earnings multiple over the next 12 months, which is cheap considering how much AI is set to drive future earnings growth.