Bill Ackman backs Mark Zuckerberg’s Meta with $2B – Business News
Billionaire activist investor Bill Ackman has poured about $2 billion into Meta, making a main guess that Mark Zuckerberg’s tech giant will outpace rivals within the artificial intelligence arms race.
The investment represents about 10% of Pershing Square’s portfolio — a sizable allocation for Ackman’s concentrated hedge fund, although the investment is barely a small fraction of Meta’s general market worth.
News of Pershing Square’s investment in Meta was reported on Wednesday by The Wall Street Journal.
Bill Ackman, founder and CEO of Pershing Square Capital Management, is making a $2 billion guess on Meta’s AI future. AFP through Getty Images
Pershing Square started investing in Meta this previous November, paying an average price of $625 per share, the Journal reported, citing an investor presentation.
Since that time, Meta’s stock climbed 11% by way of the tip of 2025 and one other 3% year-to-date.
In the final six months, the stock has dipped round 13% as traders expressed concern over the large sums the company has spent on AI.
Last month, it was reported that Meta was slashing roughly 1,500 jobs — about 10% of the 15,000-person workforce — inside its money-losing Reality Labs division as Zuckerberg shifts sources towards artificial intelligence.
The unit has racked up more than $70 billion in losses since 2020, fueling investor stress, even because the CEO pours tens of billions of {dollars} into AI analysis, information facilities and expertise.
Meta CEO Mark Zuckerberg has ramped up spending on artificial intelligence, pouring billions into infrastructure and expertise. AP
Zuckerberg has embarked on a huge spending spree to lure some of Silicon Valley’s high AI maestros.
He has expanded funding for Meta’s TBD Lab that’s centered on building what he has described as “superintelligence,” a $14.3 billion investment in Scale AI, and a more than $2 billion acquisition of AI startup Manus.
Pershing Square made clear it views Meta as uniquely positioned to benefit from artificial intelligence, writing that “AI-driven content recommendation systems materially enhance user engagement,” and that AI “leverages Meta’s rich first-party data to deliver more relevant and personalized ads.”
The firm argued that scaling engagement throughout the company’s huge person base improves utility for each shoppers and advertisers, reinforcing Meta’s dominance in digital promoting.
On valuation, the hedge fund famous that Meta is “currently trading at 22x NTM P/E (meaning the stock price is about 22 times what analysts expect the company to earn over the next 12 months) due to concerns around magnitude of spending plans on AI initiatives.”
Pershing Square has dedicated about 10% of its portfolio to Meta, making it one of the hedge fund’s most vital and concentrated investments. REUTERS
But Pershing Square mentioned the “significant upside potential from AI supports front-loading infrastructure and talent investments.”
It additionally pointed to Meta’s previous price self-discipline and up to date funds cuts as proof that the company can steadiness spending with operational effectivity.
Shares of Meta have been down round 1% close to the close of Wednesday’s trading session on Wall Street. The company’s stock is trading at round $670 per share.
A Meta spokesperson and a rep for Ackman each declined to remark.
Pershing Square has additionally constructed a main place in Uber, arguing that the ride-hailing and food-delivery giant is poised for sustained growth.
Ackman started building his Meta place in November at an average price of $625 per share. REUTERS
The firm wrote that the “medium-term outlook positions Uber for continued teens-plus bookings growth and 30%+ growth in earnings-per-share,” noting that its forecasts incorporate deliberate investments in autonomous automobiles.
Ackman has highlighted Uber’s enhancing profitability and working leverage as indicators the company is coming into a more mature, cash-generative section.
According to the company presentation, it has additionally taken a $1.3 billion stake in Amazon.
Pershing Square described the company because the “largest cloud business by market share, with secular IT infrastructure and process tailwinds, and the dominant retail e-commerce operator.”
