US Stocks Today | Ackman’s Pershing Square bets big on Meta, exits 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 technology company will benefit from the rapid adoption of artificial intelligence, according to information seen by Reuters.

Ackman and his investment team, which delivered a 21% return last year, also disclosed that the fund exited its position in Hilton Worldwide Holdings during the same period.

Pershing Square allocated roughly 10% of the firm's capital, or about $2 billion, to the Meta investment, chief investment officer Ryan Israel said during a client call, 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 considers the stock to be undervalued relative to the strength of Meta’s underlying business, the team said in a presentation reviewed by Reuters.

Meta’s shares have declined about 7.4% over the past 12 months. However, the position has generated gains for Pershing Square. Since the fund initiated the investment in November, Meta’s share price has risen 11% in 2025 and gained a further 3% in 2026 through February 9, according to the presentation cited by Reuters.

The hedge fund acknowledged that investor concerns over the scale 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 personalised advertising, and potentially drive new user engagement through AI-powered digital assistants and wearable devices.

Ackman, who typically runs a concentrated portfolio of about a dozen major positions, has been signalling growing interest in large technology companies. Last year, Pershing Square initiated a new investment in Amazon and had previously held shares in Alphabet.