As Billionaire Bill Ackman Calls Meta Platforms Cheap, Should You Buy META Stock?

Group 1 - Billionaire investor Bill Ackman has disclosed a significant new stake in Meta Platforms, representing about 10% of his hedge fund Pershing Square Capital Management's capital as of the end of 2025, indicating a belief that the stock is undervalued despite volatility [1] - Pershing's annual investor presentation argues that Meta's current share price undervalues its long-term AI-driven growth potential, stating that concerns over heavy AI spending are overstated [2] - Meta's stock has faced pressure due to fears about high AI-related spending and short-term execution risk, but Ackman's investment raises questions about whether the current valuation presents a compelling entry point [3] Group 2 - Meta Platforms is a technology conglomerate known for its influential social media platforms, including Facebook, Instagram, WhatsApp, Messenger, and Threads, and rebranded from Facebook to Meta in 2021 to reflect its focus on immersive technologies [4] - The company develops hardware and AI-driven products through divisions like Reality Labs, with a market capitalization of $1.64 trillion, making it one of the largest technology companies globally [5] - Year-to-date, Meta's stock is down about 2%, slightly underperforming the broader market, while over a 12-month horizon, it has declined 11%, lagging behind the S&P 500 Index's 12% gains [6][7]