Billionaire investor Bill Ackman is making headlines once again as his firm, Pershing Square Capital Management, reveals a significant investment in Meta Platforms. This move comes after the fund exited its long-standing position in Chipotle Mexican Grill and initiated a stake in Amazon. Notably, Meta now accounts for 10% of Pershing’s capital, highlighting Ackman’s bullish outlook for the company.
Ackman, who is known for his proactive approach to investing and communication, frequently shares insights about his trades on social media. This transparency contrasts with the more secretive strategies adopted by many of his billionaire peers. Pershing Square typically maintains a concentrated portfolio, enabling investors to easily track its performance and strategic decisions.
The rationale behind Ackman’s enthusiasm for Meta is multifaceted. He argues that the company is at the forefront of digital advertising, supported by a staggering user base of over 3.5 billion people, nearly half of the global population. This figure continues to grow, with daily active users increasing by 7% year over year in the fourth quarter of 2025. Ackman sees this vast audience as an opportunity for substantial revenue growth, particularly through the use of artificial intelligence (AI) to optimize advertising strategies.
Meta’s utilization of AI allows for a refined approach to ad targeting, leveraging deep insights into user preferences and behavior. The company has developed automated ad generation capabilities, making it an essential platform for businesses aiming to maximize their return on ad spend. This innovative approach has contributed to Meta’s revenue growth, which surged by 22% in 2025, further bolstered by a competent, founder-led management team overseeing its diverse revenue streams, including its social media operations and Reality Labs.
Despite recent challenges, including market skepticism regarding Meta’s planned 2026 capital expenditures of approximately $165 billion, Ackman believes the stock is undervalued. He noted that Meta is currently trading at a discount to its five- and ten-year average forward price-to-earnings (P/E) ratios, which at the time of writing were 21.2 and 18.2, respectively. Pershing Square acquired its Meta shares at the end of November, capitalizing on what Ackman describes as a “deeply discounted” price.
This strategy aligns Ackman with investment legends like Warren Buffett, as he aims to identify undervalued stocks with significant growth potential. Recently, Pershing Square has also made moves to diversify its portfolio, including acquiring insurance company Vantage Group. Ackman’s approach, which mirrors Buffett’s value investing philosophy, underscores a broader trend among hedge fund managers seeking value in the current market landscape.
While it may not be prudent to follow billionaire hedge fund managers blindly, Ackman’s investment in Meta represents a compelling opportunity for long-term, growth-oriented portfolios. As the digital landscape evolves and the demand for effective advertising solutions grows, Meta’s foundational position and innovative capabilities may well serve to enhance its value in the coming years.
As Pershing Square navigates these strategic investments, the market will be closely watching Ackman’s next moves and the potential implications for the broader tech sector. The focus on companies like Meta reflects an ongoing shift toward integrating advanced technology to drive business growth in an increasingly digital world.
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