Pershing Square’s Bill Ackman Makes Major Bet on Meta’s AI Future

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In a significant vote of confidence for the social media giant, prominent activist investor Bill Ackman has initiated a substantial position in Meta Platforms. Through his hedge fund, Pershing Square, Ackman has deployed approximately $2 billion into the company’s stock. This investment represents a strategic wager that Meta will be a primary beneficiary of the expanding artificial intelligence revolution, even as the company streamlines its costly metaverse operations.

The new holding constitutes roughly 10% of Pershing Square's total portfolio. The stake was largely accumulated toward the end of 2025 at an average entry price near $625 per share. When markets closed on February 13, Meta shares were trading at $638.64, marking a slight decline of 0.18% ahead of the extended Presidents Day holiday weekend.

According to analyses from Alpha Spread and Proactive Investors, Ackman’s fund views Meta as significantly undervalued. The investment thesis centers on the expectation that Meta will capture considerable value from its deepening integration of AI technologies across its platforms. This move aligns Pershing Square’s technology exposure with its existing major holdings in Alphabet and Amazon.

Key Investment Details:
* Capital Allocated: ~$2 billion
* Fund Allocation: Approximately 10%
* Average Purchase Price: Around $625 per share
* Recent Closing Price: $638.64 (February 13)

Meta's Operational Pivot: Scaling Back Reality Labs

Coinciding with this investor endorsement, Meta continues to refine its strategic focus. The company is tightening operations within its Reality Labs division, which oversees its metaverse and virtual reality initiatives. On February 16, Meta discontinued the standalone application "Horizon Workrooms," a virtual meeting platform launched in 2021. Reports from Road to VR and Business Insider indicate the application no longer fits the company's revised direction.

The current strategy emphasizes AI-powered wearables and the core Horizon platform, while dedicated metaverse workplace solutions are being phased out. Further operational efficiency measures within Reality Labs are suggested by reports of personnel adjustments—a direct response to the segment's historically substantial investment costs.

Upcoming Tech Integration: Facial Recognition for Wearables

On the technological front, Meta is preparing another advance for later this year. An internal memo obtained by the New York Times reveals plans to incorporate facial recognition technology into its Smart Glasses. Internally codenamed "Name Tag," the feature is designed to allow users to identify individuals within their Meta network or those with public profiles.

The timing of this launch appears strategic. Internal documents reference a "dynamic political environment" that Meta intends to navigate, with technical implementation aiming to balance innovation with evolving regulatory requirements.

As trading resumes following the Monday holiday, the market is digesting the dual narrative of a high-profile investment and ongoing corporate restructuring. A key question for investors is whether the perceived gains from operational efficiency will outweigh concerns over persistent metaverse expenditures, or if Ackman's substantial commitment will provide fresh momentum for Meta's stock.