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Bill Ackman’s Eyes Meta Platforms, Inc. (META) Amid Cheap Valuation

Meta Platforms, Inc. (NASDAQ:META) is included in our list of the 9 best stocks to buy according to billionaire Bill Ackman, accounting for 11.37% of the total portfolio.

One of the biggest additions to Pershing Square’s portfolio at the end of the fourth quarter of 2025 was Meta Platforms, Inc. (NASDAQ:META), with Bill Ackman acquiring 2.67 million shares, valued at over $1.76 billion.

After Meta Platforms, Inc. (NASDAQ:META) released its third-quarter 2025 results in October last year, Pershing Square took a position in the stock. The firm cited the 20% share price plunge following the release, where management laid out its plans to dramatically boost spending on AI projects in 2026. Since it initiated the position in November (exact date unknown), the stock has rallied as much as 14% in between but has since given up those gains and been flat as of March 5.

That said, Ackman saw the pullback as a desirable opportunity to acquire a stake in the stock, which was trading at just 20x earnings per share. Citing apps like Facebook, Instagram, and WhatsApp, which make up Meta’s “Family of Apps,” Ackman stated that these apps together boast over 3.5 billion daily active users worldwide, driving the firm’s positive outlook on Meta.

The investment firm believes breakthroughs in AI will improve content recommendations, increase engagement, and improve ad targeting. This would strengthen Meta Platforms, Inc. (NASDAQ:META)’s ecosystem, as the amount of time spent watching videos on Instagram has already grown by almost 30% year-over-year, Ackman stated in his Q4 2025 Letter to Shareholders from February 2026.

At the same time, hedge fund sentiment regarding Meta Platforms, Inc. (NASDAQ:META) weakened during the fourth quarter amid ongoing concerns surrounding its massive AI-related spending. Collectively, the total hedge fund stake in the stock decreased to $44 billion from $61.30 billion, and the number of bullish hedge funds also shrank from 273 to 256, according to Insider Monkey’s database.

Meanwhile, Meta Platforms, Inc. (NASDAQ:META) continues its efforts to capitalize on the AI boom.

On March 4, 2026, Meta Platforms, Inc. (NASDAQ:META) and News Corp. signed a multi-year AI content license agreement valued at up to $50 million per year. This enables Meta to access U.S. and U.K. content that can be used to train AI models and power its products. The contract will be in effect for a minimum of three years.

Meta Platforms, Inc. (NASDAQ:META) creates social media apps and digital platforms through its Family of Apps and Reality Labs divisions. The corporation is headquartered in Menlo Park, California.

While we acknowledge the potential of META to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than META and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 12 Best Beaten Down Technology Stocks to Buy According to Wall Street Analysts and 7 Most Volatile Stocks Under $5 for Day Trading.

Disclosure: None.  Follow Insider Monkey on Google News.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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Wall Street calls this $3 stock a “Melting Ice Cube.” They said the same thing about BTI before it returned 90%.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

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