Bill Ackman’s Pershing Square Bets Big on Meta Stock

Billionaire investor Bill Ackman is making a significant bet on Meta Platforms, the parent company of Facebook, Instagram, and WhatsApp. His hedge fund, Pershing Square Capital Management, disclosed a substantial stake in the tech giant late last year, a move that signals confidence in Meta’s future despite recent market concerns.

The investment, representing roughly 10% of Pershing Square’s capital – approximately $2 billion – was revealed during the fund’s annual investor presentation on Wednesday, February 11, 2026. Ackman and his team, who delivered a 21% return in 2025, believe Meta’s current valuation doesn’t adequately reflect its long-term potential, particularly in the realm of artificial intelligence.

“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 Pershing Square team wrote in a presentation seen by Reuters. This sentiment comes as Meta navigates investor anxieties surrounding its substantial investments in AI initiatives, which have, in turn, put pressure on the stock price.

Despite a 7.4% dip in Meta’s stock price over the past 12 months, Pershing Square has already seen positive returns on its investment. Since initiating the position in November, the share price has increased by 11% in 2025 and continued to climb, rising 3% through February 9, 2026.

The move into Meta comes as Pershing Square simultaneously exited its investment in Hilton Worldwide Holdings. This strategic shift underscores Ackman’s conviction in Meta’s growth prospects and his willingness to reallocate capital towards opportunities he deems more promising. The fund’s chief investment officer, Ryan Israel, detailed the Meta investment during a call with clients.

The market’s hesitation regarding Meta stems from concerns about the financial impact of its aggressive spending on AI. Investors are closely watching how these investments will translate into tangible results, particularly in areas like content recommendation and personalized advertising. Ackman, however, appears to be betting that AI will not only enhance Meta’s existing offerings but also unlock new avenues for engagement through potential AI-powered digital assistants or wearable technology.

This isn’t the first time Ackman has publicly expressed confidence in a major tech company. However, this investment is notable for the size of the stake and the explicit articulation of a belief in Meta’s undervalued potential. The decision to publicly disclose the investment also suggests Ackman intends to be a long-term shareholder and potentially an influential voice within the company.

The broader implications of Ackman’s investment extend beyond Meta’s stock price. It could signal a renewed interest from institutional investors in the tech sector, particularly those focused on companies with strong AI capabilities. It also adds another layer of scrutiny to Meta’s AI strategy, as Ackman is known for his active involvement in the companies he invests in.

While the tech giant has faced challenges in recent years, including increased competition and regulatory scrutiny, its sheer scale and user base remain formidable. With over three billion monthly active users across its platforms, Meta continues to be a dominant force in the social media landscape. The question now is whether its investments in AI will be enough to maintain that dominance and justify the confidence of investors like Bill Ackman.

The investment also highlights a potential shift in investor sentiment towards companies that are heavily investing in AI. While there have been concerns about the costs associated with AI development, Ackman’s bet suggests that investors are beginning to see the long-term potential of this technology and are willing to reward companies that are positioned to capitalize on it.

Pershing Square’s performance in 2025, with a 20.9% gain, further underscores the firm’s ability to identify and profit from undervalued opportunities. The Meta investment is being viewed as a key component of the fund’s strategy for continued success in the coming years.