Bill Ackman just invested $1 billion in this stock

Core Viewpoint - Bill Ackman, through Pershing Square, has made a significant investment in Meta Platforms, which is expected to yield long-term benefits due to its strong business fundamentals and AI integration potential [1][4]. Investment Details - Pershing Square's investment in Meta accounts for approximately 10% of its portfolio, potentially valuing the investment at around $1.5 billion based on a total portfolio value of $14 billion [2]. - The investment rationale includes Meta's high-quality advertising business, strong balance sheet, and a projected 22% annual growth rate in 2025 [4]. Performance Analysis - Meta's latest earnings report showed revenues of $59.89 billion and earnings per share (EPS) of $8.88, exceeding forecasts [5]. - Following the earnings report, Meta's stock surged approximately 10% due to an optimistic revenue forecast for 2026, estimating sales between $53.5 billion and $56.5 billion [6]. - Despite the initial surge, Meta's stock has faced a decline, with a year-to-date drop of 3.08% and a current price of $639.77, which is 13.35% below its January high [7]. - Over the past 12 months, Meta's stock has decreased by 10.69%, suggesting it may be undervalued compared to its strong financial performance [8].