Bill Ackman's Pershing Square has disclosed a 10% position in Meta Platforms Inc, marking a significant bet on the social media giant's artificial intelligence transformation. The investment, representing approximately 10% of Pershing Square's total capital at the end of 2025, signals confidence in Meta's long-term earnings power despite heavy AI spending.

Pershing Square argues that the market is undervaluing Meta's core advertising business, which currently trades at 22 times forward earnings. The fund contends that investors concerned about AI investments are missing the technology's long-term upside, describing Meta as a "deeply discounted valuation for one of the world's greatest businesses." The firm specifically notes that Meta's core advertising business becomes even cheaper when excluding Reality Labs' operating losses.

The disclosure comes alongside Pershing Square's strategic moves in other tech names, including opportunistic positions in Amazon during April 2025 market volatility and Hertz Global Holdings. The fund has simultaneously exited long-standing positions in Chipotle Mexican Grill and Hilton Worldwide Holdings, with the latter marking the conclusion of a highly successful multi-year investment.