Billionaire Bill Ackman Is Betting Big on Meta Platforms Stock. Should You?

Industry Overview - The artificial intelligence economy is projected to reach approximately $4.8 trillion by 2033, driven by AI agents and automation tools growing at over 40% annually [1] - AI data center chip revenue is expected to increase from $207 billion in 2025 to around $286 billion by 2030, indicating significant investment in AI infrastructure [1] Company Insights - Meta Platforms (META) is positioned centrally within the AI spending cycle, with its AI investments contributing to revenue growth and enhancing its competitive advantage [2] - Analysts speculate that META stock could potentially rise towards 1,000 as AI-driven advertising tools and recommendation systems begin to accumulate value over time [2] - Meta is gaining recognition as an AI platform beyond its social media roots, attracting attention from investors like Bill Ackman, who has disclosed a new stake in the company [3][4] Financial Performance - Over the past 52 weeks, META stock has declined by approximately 11% and is down 2.2% year-to-date [5] - META trades at about 22.8 times forward earnings, significantly higher than the sector average of 14.5 times, indicating that investors are willing to pay a premium for its growth potential [7] Dividend Information - Meta has introduced a quarterly dividend, currently yielding about 0.31% annually, with a forward payout ratio of 6.93%, suggesting potential for future increases [8] - The most recent dividend payment was $0.525 per share, distributed on December 15, 2025, and the company has a one-year history of raising its dividend payout [8]