Pershing Square Bets Big on Meta’s AI Potential Despite Market Skepticism
Billionaire investor Bill Ackman's Pershing Square has deployed $2 billion into Meta Platforms, representing 10% of the fund's capital. The bold MOVE comes as Meta shares trade 16% below their year-ago level amid investor concerns over aggressive AI spending.
"We believe Meta's current share price underappreciates the company's long-term upside potential from AI," Pershing Square stated in its annual letter. The fund views Meta's planned $115-$135 billion AI investment by 2026 as strategic positioning rather than reckless expenditure.
Meta's dual-engine structure continues to power its $1.7 trillion valuation. The Core Family of Apps division - encompassing Facebook, Instagram and WhatsApp - remains the profit center, while Reality Labs' VR initiatives continue operating at a loss.