Billionaire investor Bill Ackman's Pershing Square hedge fund has liquidated its long-standing Chipotle Investment holding and allocated approximately $2 billion—representing 10% of the fund's assets—into Meta Platforms. The investment decision follows Meta's post-earnings pullback in October 2025, presenting what Ackman identified as an attractive entry point for the technology giant.
Ackman's thesis centers on Meta's capacity to leverage its substantial infrastructure investments for artificial intelligence applications across its core social media operations. According to the investor, Meta's existing user base of 3.5 billion daily active users positions the company to capitalize on AI-driven improvements in user engagement and advertising targeting capabilities. The company's excess AI infrastructure capacity can be absorbed organically within these business segments, Ackman contends.
Meta's current valuation stands at 21.8 times projected 2026 earnings, placing it in line with broader S&P 500 valuations. Excluding the company's Reality Labs metaverse division spending, the multiple narrows to 18 times forward earnings. The rebalancing reflects Ackman's confidence in Meta's ability to generate returns from its substantial technology investments while maintaining pricing discipline relative to historical standards.