Bill Ackman Takes Stake In Meta, Flags ‘Significant Upside Potential From AI’

• In its annual investor presentation, the fund said it believes concerns around Meta’s AI-related spending initiatives are underestimating the company’s long-term upside potential from AI.
• The fund listed Meta’s high-quality, scalable advertising business model with increasing returns to scale as a key strength.
• In its latest quarterly report, Meta announced capital expenditures in the range of $115 billion to $135 billion for 2026, up from $72.22 billion in the previous year.

Bill Ackman’s hedge fund, Pershing Square, revealed on Wednesday that it acquired a sizable stake in Meta Platforms Inc. (META), amounting to 10% of its capital at the end of 2025.

“We believe concerns around META’s AI-related spending initiatives are
underestimating the company’s long-term upside potential from AI,” Pershing Square’s annual investor presentation said.

Investment Thesis

In the presentation, Pershing Square highlighted Meta’s growing user base, 22% annual revenue growth, leadership in the digital advertising space, and that it trades at roughly 22 times its forward earnings multiple over the next 12 months as key positives.

The fund listed Meta’s high-quality, scalable advertising business model with increasing returns to scale as a key strength, noting rising engagement across its vast user base and first-party data to leverage ad targeting.

The find also said that “Meta’s business model is one of the clearest beneficiaries of AI integration,” that can be used to enhance content recommendations, personalize ads, automate campaigns, and unlock new use cases. Despite increased AI investment in 2026, the fund said Meta’s strong balance sheet, high-margin core business, and ongoing cost discipline support long-term earnings growth while limiting overbuilding risk.

“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,” the presentation said.

Meta’s AI Push

In its latest quarterly report, Meta announced capital expenditures in the range of $115 billion to $135 billion for 2026, up from $72.22 billion in the previous year.

Meanwhile, other large tech companies, including Meta, have collectively announced plans to invest over $630 billion in AI buildouts in 2026, more than double the spend from 2025.

Meta also broke ground at a data center campus in Lebanon, Indiana on Wednesday, and said the facility represents an investment of over $10 billion in AI infrastructure, marking one of its largest infrastructure investments till date.

The facility is designed to deliver one gigawatt of power that is intended to support its AI workloads and core businesses.

Ackman’s Picks

Apart from Meta, Pershing Square also took positions in Amazon and Hertz, stakes that were previously disclosed.

The presentation also noted that the fund exited investments in Chipotle, CPKC, Nike and Hilton.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around META shares remained in the ‘bearish’ territory over the past 24 hours amid ‘low’ message volumes.

One bullish user said they concurred with Ackman’s view, adding that they expect the company’s shares to surge to $1000 this year. Shares of the company were trading around $667.76 at the time of writing.

Shares of META have declined more than 7% in the past year.

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