Bill Ackman, founder and CEO of Pershing Square Capital Management, attends Milken Conference 2025 in Beverly Hills, California, USA on May 6, 2025.
Mike Blake | Reuters
Bill Ackman’s Pershing Square meta on wednesday.
“We believe Meta’s current share price underestimates the company’s long-term upside potential from AI and represents a significant discount to one of the world’s leading companies,” the fund said in its annual investor presentation.
This position represents 10% of Pershing’s capital at the end of 2025.
Meta’s stock price has fallen 16% in the past 12 months due to concerns that the company is investing too much in artificial intelligence. In its fourth-quarter earnings report in January, the company predicted that AI-related capital spending would total between $115 billion and $135 billion in 2026.
“We believe concerns about META’s AI-related spending initiatives have led to an underestimation of the company’s long-term upside potential from AI,” Pershing said in the presentation.
META 1 year chart
Pershing noted that Meta currently trades at 22 times expected earnings over the next 12 months, which is cheap considering how much AI will boost future earnings growth. Alphabet, Apple, and Nvidia all have high forward P/E ratios.
Pershing added another point in the fourth quarter. The fund purchased a position Amazon, hertz According to previously disclosed Amazon and Hertz stock presentations, meta will become a reality in 2025.
Last year, Pershing S&P500the fund’s net asset value increased by 20.9% versus the index’s return of 17%.
