Billy Ackman’s Pershing Square commits $2 billion to Meta as AI spending debate weighs on stock

Billionaire investor Billy Ackman has built a $2 billion position in Meta through his Pershing Square fund, a stake that now represents 10% of the fund's capital. Despite Meta's shares falling 16% over the past year amid concerns about heavy AI-related spending, Ackman and his team argue the stock is deeply undervalued given its 2025 revenue of $200 billion and 3.5 billion daily users. They see Meta's AI investments and advertising model as long-term growth drivers, even as Reality Labs continues to generate significant losses.