Ackman Calls Meta 'One Of The World's Greatest Businesses,' Adds Stock Alongside Amazon, Alphabet

Bill Ackman is betting big on Magnificent Seven stocks once again, unveiling a new position in Meta Platforms (NASDAQ:META) in the Pershing Square Capital Management investment portfolio, alongside existing wagers on Alphabet Inc (NASDAQ:GOOG)(NASDAQ:GOOGL) and Amazon.com Inc (NASDAQ:AMZN).

Ackman Bets On Meta Platforms

Pershing's investment presentation Wednesday unveiled a new stake in Meta, just days ahead of the next 13F filing deadline for fourth quarter portfolio updates from fund managers.

The position size is unknown, but the presentation revealed that Meta made up around 10% of the portfolio. Ackman highlighted several reasons for the latest investment.

"We believe Meta's current share price underappreciates the company's long-term upside potential from AI and represents a deeply discounted valuation for one of the world's greatest businesses," the firm said in the presentation. Meta is a "leader in the fast-growing digital advertising space and one of the clearest beneficiaries of AI integration," it added.

"We believe concerns around META's AI-related spending initiatives are underestimating the company's long-term upside potential from AI," it said.

The presentation highlights Meta's 3.5 billion daily active users and a growing user base. An experienced leadership team and the company's stock multiples are also highlighted as reasons to be bullish going forward.

Ackman's Key Criteria For Investments

The presentations highlight numerous principles that are used by the management team when looking at new investments. Here are the investment principles:

• Simple, predictable free cash flow
• Formidable barriers to entry
• Limited exposure to extrinsic factors we cannot control
• Strong financial profile
• Attractive valuation
• Minimal capital markets dependency
• Large market capitalization
• Exceptional management and governance

Ackman's Portfolio Changes Show Mag 7 Preference

The presentation highlights changes made over the last 24 months to the investment portfolio.

This includes new holdings in Hertz Global Holdings (NASDAQ:HTZ), Amazon.com and Meta. These three new allocations make up 2%, 13% and 10% respectively of Pershing's portfolio.

The firm took a stake in Alphabet back in 2023 and has cut that holding in recent quarters. The tech giant represented around 19% of assets at the end of the third quarter between the two class types of shares (GOOG, GOOGL).

Interestingly enough, Ackman and team are now betting on the top performing Magnificent Seven stock in 2025 (GOOGL) and the two worst performing of the seven (AMZN, META).

The presentation also shares that Pershing has exited positions in Chipotle Mexican Grill (NYSE:CMG), Nike Inc (NKE) and Hilton Worldwide Holdings (NYSE:HLT) in recent quarters.

Pershing Square saw net asset value growth of 20.9% in 2025 according to the presentation, beating the S&P 500 (+16.6%).

Ackman and team are betting on Meta, Amazon and Alphabet, three of the Magnificent Seven stocks, to continue the gains and outperformance compared to the S&P 500.

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