Pershing Square takes sizable Meta stake amid tech realignment

Investing.com -- Bill Ackman’s Pershing Square has disclosed a significant new position in Meta Platforms Inc (NASDAQ: META), signaling confidence in the social media giant’s artificial intelligence pivot. The investment manager revealed on Wednesday that the stake represented approximately 10% of its total capital at the end of 2025.

The firm’s conviction stems from a belief that the market is currently discounting the long-term earnings power of Meta's core advertising engine. Pershing noted that investors concerned about heavy AI spending "are underestimating its long-term upside from the technology," according to its latest investor presentation.

Meta currently trades at 22 times forward earnings, a valuation Pershing Square describes as a "deeply discounted valuation for one of the world’s greatest businesses." The fund argues that the core advertising business is even cheaper when excluding the current operating losses from the Reality Labs division.

The presentation also detailed opportunistic entries into Amazon.com Inc (NASDAQ: AMZN) and Hertz Global Holdings Inc (NASDAQ: HTZ) over the past year. Pershing initiated its Amazon stake during market volatility in April 2025, citing "significant margin expansion opportunity in Amazon’s retail business."

While adding new tech exposure, the firm has completely exited its long-standing positions in Chipotle Mexican Grill Inc (NYSE: CMG) and Hilton Worldwide Holdings Inc (NYSE: HLT). The manager noted that while Chipotle remains a great business, "the wide range of potential future outcomes led us to sell our remaining shares" following recent leadership changes.

The exit from Hilton marks the conclusion of a highly successful multi-year investment for the New York-based fund. Pershing Square indicated that Hilton’s current valuation reached a point where prospective returns were "unlikely to meet our high return threshold."

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