US Stocks Today | Ackman’s Pershing Square bets big on Meta, leaving Hilton on AI optimism

Billionaire investor Bill Ackman has told clients that his hedge fund, Pershing Square Capital Management, bought shares in Meta Platforms late last year, betting that the tech company would benefit from the rapid adoption of artificial intelligence, according to information from Reuters.Ackman and his investment team, which returned 21% last year, also announced that the fund exited its position in Hilton Worldwide Holdings during the same period.

Pershing Square has committed roughly 10% of the company’s capital, or about $2 billion, to the Meta investment, Chief Investment Officer Ryan Israel said on a call with clients, according to Reuters.

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The fund believes Meta’s current share price does not fully reflect the company’s long-term upside potential from artificial intelligence and views the stock as undervalued relative to the strength of Meta’s underlying business, the team said in a presentation reviewed by Reuters.

Shares of Meta are down about 7.4% over the past twelve months. However, the position has generated profits for Pershing Square. Since the fund began investing in November, Meta’s share price is up 11% in 2025 and up another 3% in 2026 through Feb. 9, according to the presentation cited by Reuters.

The hedge fund acknowledged that investor concerns about the extent of Meta’s spending on artificial intelligence initiatives have weighed on the stock. However, Pershing Square believes AI will enhance Meta’s content recommendation systems, improve personalized advertising, and potentially drive new user engagement through AI-powered digital assistants and wearable devices. Ackman, who typically manages a concentrated portfolio of about a dozen large positions, signals growing interest in big tech companies. Last year, Pershing Square started a new investment in Amazon and previously held shares in Alphabet.