The Motley Fool·2026-02-16 08:12Group 1: Bill Ackman's Investment Strategy - Bill Ackman has nearly a quarter of his portfolio split between Amazon and Meta Platforms, with 23% of Pershing Square Capital Management's capital allocated to these two stocks [2][10] - Ackman's investment thesis for Amazon focuses on its strong presence in e-commerce and cloud computing, with Amazon Web Services (AWS) being the largest public cloud provider [5][11] - For Meta Platforms, Ackman views the company as the second-largest ad tech company globally, benefiting from AI innovations that enhance ad targeting and user engagement [11][12] Group 2: Amazon's Performance and Outlook - Amazon accounts for 13% of Ackman's portfolio, with innovations in AI driving revenue growth and improving profitability [5][6] - The company's operating margin increased by 1.5 percentage points in the fourth quarter, excluding one-time charges, indicating potential for significant margin expansion [6] - AWS has seen a 24% increase in cloud services sales in the fourth quarter, marking the fastest growth in 13 quarters, supported by the introduction of new AI products and services [7] Group 3: Meta Platforms' Growth Potential - Meta Platforms represents 10% of Ackman's portfolio, with a focus on maximizing return on ad spend through precise ad targeting [11][12] - The average price per ad increased by 6% year over year, driven by improved ad performance and increased advertiser demand [13] - Wall Street estimates Meta's earnings will grow at 19% annually over the next three years, making its current valuation of 27 times earnings attractive for investors [14] Group 4: Stock Valuation and Price Targets - Amazon's median target price is $285 per share, implying a 43% upside from its current price of $199 [10] - Meta's median target price is $850 per share, suggesting a 32% upside from its current price of $640 [10]