Billionaire investor Bill Ackman has made a significant move by establishing a substantial new position in Meta Platforms through his hedge fund, Pershing Square. Valued at approximately $2 billion, this investment highlights a strong vote of confidence in the social media giant’s strategic pivot toward artificial intelligence (AI), despite the company’s ongoing heavy expenditures.
Reports from the Wall Street Journal indicate that Pershing Square has allocated around $2 billion to Meta stock, making it one of the hedge fund’s largest holdings and accounting for about 10% of its total portfolio. Fox Business detailed that the position was accumulated starting in November, with an average entry price of $625 per share. The investment was officially disclosed during Pershing Square’s annual investor meeting on Wednesday.
The rationale behind this investment centers on AI. In its investor presentation, Pershing Square characterized Meta’s business model as one of the “clearest beneficiaries” of widespread AI integration. Specific areas where the hedge fund anticipates significant improvements include content recommendation algorithms, the relevance and delivery of personalized advertising, and new opportunities in enterprise-focused wearables and AI-powered digital assistants.
This bullish stance comes as Meta reallocates resources, shifting emphasis away from its virtual reality Metaverse initiatives and toward AI-driven projects. The company’s fourth-quarter and full-year 2025 report outlined aggressive capital expenditure plans for 2026, projecting spending between $115 billion and $135 billion. These funds are earmarked primarily for the early-stage expansion of AI infrastructure.
The strategic wager is set against the backdrop of persistent challenges within Meta’s Reality Labs division. Fox Business notes that this unit has accumulated losses totaling $83 billion since 2020. Just last month, Meta eliminated approximately 1,500 jobs within Reality Labs, representing nearly 10% of the division’s workforce. The company is now redirecting more of its hardware focus toward AI-enhanced smart glasses.
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The new Meta investment aligns with a broader rebalancing of Pershing Square’s holdings. The fund also maintains positions of around $2 billion in Uber and $1.3 billion in Amazon, as reported by Fox Business. Concurrently, the hedge fund has announced a complete exit from its Hilton stake, following the earlier sale of its long-held position in Chipotle Mexican Grill.
Pershing Square Holdings delivered a strong performance in 2025, gaining 20.9%, according to the Wall Street Journal, which outpaced the S&P 500’s total return of 17.9%. However, the fund recorded a decline of 2.5% for January of this year.
Meta’s shares have shed roughly 13% over the past six months. Pershing Square attributes this decline to investor apprehension over the scale of the company’s AI investments. In its presentation, the fund labeled Meta’s stock as “significantly undervalued” relative to its anticipated AI-driven growth potential. As the investment landscape evolves, Ackman’s bet on Meta underscores a pivotal moment in the intersection of social media and artificial intelligence.
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