Pershing Square has revealed a sizable new position in Meta Platforms Inc that represented approximately 10% of the fund’s total capital at the end of 2025, according to the manager's latest investor presentation. The move signals clear conviction in Meta’s shift toward artificial intelligence and an assessment that the market is not fully valuing the company’s long-term earnings potential.
In the presentation, Pershing Square framed its decision around the view that current market pricing does not reflect the enduring strength of Meta’s advertising franchise. The firm said investors worried about heavy AI spending "are underestimating its long-term upside from the technology," and pointed to Meta’s forward valuation as evidence of a disconnect with fundamentals.
Meta is trading at 22 times forward earnings, a multiple Pershing Square characterized as a "deeply discounted valuation for one of the world’s greatest businesses." The fund further argued the valuation picture improves when stripping out the operating losses from Reality Labs, noting that the core advertising business appears cheaper on that basis.
Alongside the Meta disclosure, the presentation detailed other portfolio adjustments made over the past year. Pershing Square described opportunistic entries into Amazon.com Inc and Hertz Global Holdings Inc. The Amazon stake was initiated during market volatility in April 2025, with the fund highlighting a "significant margin expansion opportunity in Amazon’s retail business." The Hertz position was also cited as an opportunistic purchase made over the prior 12 months.
At the same time, Pershing Square has fully exited two longstanding holdings. The firm sold its remaining shares in Chipotle Mexican Grill Inc, explaining that while Chipotle remains "a great business," the "wide range of potential future outcomes led us to sell our remaining shares" following recent leadership changes. The presentation framed that sale as a response to increased uncertainty about the company's trajectory.
The manager also exited Hilton Worldwide Holdings Inc, concluding a multi-year investment. Pershing Square said Hilton’s valuation had reached a level where expected future returns were "unlikely to meet our high return threshold," prompting the full exit despite the position’s prior success.
Overall, the presentation underscores a reallocation of capital toward select technology exposures while taking profits or stepping away from positions where prospects or valuation no longer align with the firm’s return objectives. The moves highlight Pershing Square’s emphasis on valuation, anticipated margin improvement in retail, and selective opportunism during periods of market volatility.