Bill Ackman (AI) Makes Bold AI Bet
The impact of artificial intelligence over the past year has prompted a shift in investment strategies, with portfolios moving from traditional value stocks to growth stocks while maintaining diversification.
Major hedge funds are increasingly adding the so-called 'magnificent seven' stocks to their portfolios or enhancing their existing positions. Billionaire hedge fund manager Bill Ackman, through his Pershing Square Capital Management, is following this trend.
In its latest 13F filing, Pershing Square unveiled surprising new stakes in Meta Platforms (META) as of December 31, 2025, and also increased its position in Amazon (AMZN), highlighting these two companies as pivotal in the burgeoning AI era.
The filing, which covers positions as of Dec 31, 2025, indicates that Pershing Square has a total portfolio valued at around $15.5 billion, encompassing over 12 equity positions. This reflects the firm’s preference for a concentrated investment approach while ensuring diversity across various sectors.
According to past disclosures, Ackman's Pershing Square now holds approximately 2.7 billion META shares, which represents 11% of its portfolio.
Meta Emerges as a Strong AI Bet
META has emerged as an intriguing investment, especially as other firms, including Lone Pine Capital and Third Point LLC, have recently reduced their stakes in the company. These moves might be attributed to META's increased AI expenditure as shown in its latest Q4 earnings report, alongside a 10% year-over-year decline in stock price.
Bill Ackman, known for his conviction-based investing style, has gained fame for his unique approach of investing in undervalued stocks and making long-term bets on select holdings. His portfolio includes well-known names like Uber and Chipotle, the latter of which he exited in Q4.
Despite ongoing challenges, Meta has demonstrated strong momentum, closing out 2025 on a positive note with a 7% increase in stock price during the last quarter.
Meta’s earnings reveal:
- Q4 Revenue: $59.89 billion, reflecting a 24% year-over-year increase.
- Ad Revenue: $58.1 billion, comprising most of Meta’s total revenue.
- Net Income: $22.8 billion.
- Operating Margin: 41%.
- Capital Expenditures: $72.22 billion for the full year 2025.
Most importantly, Meta announced aggressive plans for AI infrastructure expansion in the U.S., expecting capital expenditures in 2026 to be between $115 and $135 billion. This investment is aimed at enhancing its Meta Superintelligence Labs and core AI systems.
As ads remain a primary revenue source for the social media giant, with platforms like Instagram, Facebook, Threads, and WhatsApp, Meta's focus on personalized content aims to improve user experiences, as highlighted in Zuckerberg's recent earnings call.
While facing litigation expenses and regulatory challenges, Meta is optimistic about increasing its operating income in 2026.
Amazon Becomes Ackman’s Biggest AI Pillar
The most notable change in Ackman’s portfolio is the significant increase in his stake in Amazon, which now constitutes 14% of the portfolio. Ackman has acquired approximately 9.6 million shares of Amazon, marking a 64% increase from previous holdings.
Brookfield remains Ackman's largest holding at 18% of the portfolio, while Uber has decreased from 20% to 15.90% in recent adjustments.
Here are the top 10 holdings of Pershing Square according to their latest 13F:
- Brookfield (BN) 18.15%
- Uber (UBER) 15.90%
- Amazon (AMZN) 14.28%
- Alphabet Class C (GOOG) 12.46%
- Meta (META) 11.37%
- Restaurant Brands International (QSR) 10.05%
- Howard Hughes Holding (HHH) 9.69%
- Hilton Worldwide Holdings (HLT) 5.60%
- Alphabet Class A (GOOGL) 1.37%
- Seaport Entertainment Group (SEG) 0.64%
Pershing's focus on AI investments is underscored by the significant roles Amazon and Uber play in their strategy. Amazon's AWS division continues to lead in cloud computing, bolstered by new AI integrations.
Moreover, Amazon's substantial investment in Anthropic, now totaling $8 billion, has resulted in impressive growth, with Anthropic's valuation reaching $380 billion. Despite a recent 11% decline in stock price year-to-date, Amazon's Q4 results remain strong amid ongoing layoffs and a renewed focus on AI initiatives.
Uber is also ramping up its AI efforts, as indicated in its earnings report, prioritizing advancements in the autonomous vehicle sector to strengthen its global presence. The firm recently divested its entire stake in Chipotle Mexican Grill (CMG) during the last quarter.
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