Bill Ackman Invests $2 Billion in Meta
Billionaire investor Bill Ackman has made a substantial move by investing around $2 billion in Meta, signaling a strong belief that Mark Zuckerberg’s company will excel in the competitive realm of artificial intelligence.
This investment constitutes about 10% of Pershing Square’s overall portfolio, which is quite significant for Ackman’s focused hedge fund, though it’s just a small slice of Meta’s total market value.
The news about Pershing Square’s stake in Meta surfaced on Wednesday, as reported by various sources.
Pershing Square started acquiring shares in Meta in November, purchasing at an average of $625 per share, according to information from a recent investor presentation.
Since that time, Meta’s stock price has risen by 11% until the end of 2025, and has climbed another 3% since the beginning of this year.
Nonetheless, the stock has seen a decline of approximately 13% over the last six months due to concerns among investors regarding the company’s heavy financial commitment to AI.
Reports indicate that last month, Meta announced the layoff of about 1,500 employees, which is around 10% of its workforce of 15,000, within its struggling Reality Labs division, as Zuckerberg redirects resources toward AI development.
The AI sector has faced substantial losses exceeding $70 billion since 2020, and while leaders in the industry continue pouring funds into AI research and infrastructure, investor scrutiny has intensified.
Zuckerberg has significantly ramped up investments in attracting top talent from Silicon Valley, launching a major initiative focused on “superintelligence.” This has included a $14.3 billion investment in Scale AI and a more than $2 billion acquisition of the AI startup Manas.
Pershing Square is optimistic about Meta’s prospects, claiming it is uniquely poised to benefit from AI advancements. They noted that Meta’s “AI-driven content recommendation system will substantially enhance user engagement” and capitalize on the rich first-party data for more personalized advertising.
The hedge fund further stated that enhancing engagement within its vast user base will bolster the utility of Meta for both consumers and advertisers, thus reinforcing its standing in the digital advertising landscape.
Looking at valuation, they mentioned that Meta is currently trading at a forward price-to-earnings ratio of 22 times, partly due to worries about the scale of its AI spending plans.
Despite these concerns, Pershing Square believes that the potential upside from AI justifies significant upfront investments in infrastructure and talent. They also pointed to Meta’s historical cost discipline and recent budget cuts as evidence of a balanced approach to spending and efficiency.
On Wall Street, Meta’s stock saw a roughly 1% drop in the last minutes of trading on Wednesday, sitting around $670 per share.
Both a spokesperson for Meta and a representative for Ackman chose not to provide comments on the investment.
Pershing Square’s portfolio also includes a substantial position in Uber, which they believe is on track for sustained growth.
Ackman projected that Uber anticipates ongoing booking growth among teens and adults, with an expected earnings per share increase of over 30%, supported by investments in self-driving technology.
He emphasized Uber’s increasing profitability and operational efficiency, indicating that the company is transitioning into a more mature phase of cash generation.
Additionally, Pershing Square has acquired $1.3 billion worth of Amazon stock, describing it as “the largest cloud business by market share” and a leading player in retail e-commerce with favorable long-term infrastructure trends.
