Bill Ackman’s Pershing Powers Through AI Selloff With a Big Bet Worth Watching

Market Overview - The S&P 500, Dow Jones Industrial, and Nasdaq experienced declines of 1.5%, 1.4%, and 2.2% respectively, as markets pulled back from record levels due to an AI-induced selloff [1] - Investors are increasingly concerned about potential techno-disruptions, reflecting a shift in market sentiment [1] Company Focus: Meta - Bill Ackman's Pershing Square has taken a $2 billion stake in Meta, representing about 10% of the hedge fund's portfolio [3] - Despite Meta's stock returning over 500% since the beginning of 2023, it has faced a 12% decline over the past year [3] - Meta plans to invest $115 billion to $135 billion in capital expenditures by 2026, raising concerns among investors about the effectiveness of its AI spending [3] - Ackman argues that concerns regarding Meta's AI-related spending are underestimating the company's long-term upside potential, particularly as the average price per ad rose by 6% in Q4 2025 [3] - Meta's current trading at 27.3 times earnings is viewed as favorable compared to many of its tech peers, supporting Ackman's value investment thesis [3] Market Sentiment and Economic Indicators - Stronger-than-expected jobs data has led to speculation that the Federal Reserve may delay rate cuts to focus on inflation [3] - Recent inflation data dropped to a near five-year low, potentially paving the way for deeper rate cuts in the future [3] Sector Impact - The appearance of new AI applications has caused significant declines in shares of trucking, logistics, software, insurance, and real estate sectors, with some experiencing temporary drops of double digits [2]