Pershing Square Pours $2B into Meta at 21.8x 2026 Earnings
Bill Ackman's Pershing Square exited a longtime Chipotle position and deployed about $2 billion, or 10% of the fund, into Meta Platforms after its October 2025 post-earnings sell-off. Meta trades at 21.8x projected 2026 earnings (18x excluding Metaverse spending) with 3.5 billion daily active users driving network effects.
1. Ackman’s Strategic Shift
Pershing Square Capital Management sold its longstanding Chipotle position and invested approximately $2 billion—around 10% of its assets—into Meta Platforms following the stock’s October 2025 sell-off. Ackman cited Meta's ability to absorb excess AI infrastructure capacity, improve user engagement through AI-driven features, and enhance ad targeting as key drivers for the sizable allocation.
2. Valuation and Growth Profile
Meta currently trades at 21.8 times its projected 2026 earnings, aligning with the broader S&P 500, or 18 times when excluding Metaverse investments. The company benefits from 3.5 billion daily active users, robust network effects and expanding AI initiatives expected to support future revenue growth.