Pershing Square Raises 10% META Stake Amid AI-Driven Upside, Citing Deep Discount (02-11-2026)

Pershing Square Capital Management increased its META-US stake to 10% of its capital as of December 2025, citing confidence in Meta’s pivot to artificial intelligence. The firm argues that market concerns over AI-related capital expenditures have depressed the stock, with its long-term upside potentially significantly undervalued. Meta’s stock has declined 16% over the past 12 months, while the firm projects $115B–$135B in AI capital expenditures for 2026. Excluding Reality Labs’ current operating losses, Meta’s core advertising business appears even more attractively valued at a forward P/E of about 22. The firm has added to its technology exposure this quarter, buying Amazon and Hertz. It sold its remaining stakes in Chipotle and Hilton, citing management changes at Chipotle and the conclusion of a long holding in Hilton, where current valuations no longer meet its high-returns-with-risk target. Pershing Square outperformed the S&P 500 in 2025, with net asset value up 20.9% versus 17% for the index.