Billionaire activist investor Bill Ackman has poured about $2 billion into Meta, making a major bet that Mark Zuckerberg’s tech giant will outpace rivals in the artificial intelligence arms race.The investment represents about 10% of Pershing Square’s portfolio — a sizable allocation for Ackman’s concentrated hedge fund, though the investment is only a small fraction of Meta’s overall market value.News of Pershing Square’s investment in Meta was reported on Wednesday by The Wall Street Journal. 4 Bill Ack ...

Core Viewpoint - Instagram's chief Adam Mosseri testified that while there can be problematic usage of social media, he does not classify it as addiction, emphasizing the distinction between clinical addiction and problematic use [1][2] Group 1: Testimony and Legal Context - Mosseri acknowledged that the term addiction can be used casually, differentiating personal feelings of excessive use from clinical definitions [2] - The ongoing trial in Los Angeles involves a plaintiff alleging that social media platforms, including Instagram, misled the public about app safety and contributed to mental health issues in young users [2][4] - TikTok and Snap were initially part of the lawsuit but have settled, leaving Instagram as the primary focus regarding its impact on the plaintiff's mental health [3] Group 2: Company Decisions and Responsibilities - The plaintiff's lawyer questioned Mosseri about Instagram's design choices that may lead to negative mental health effects, highlighting the role of executives in decision-making [5] - Mosseri stated that the protection of minors is a priority, asserting that safeguarding children aligns with long-term business interests [6] - The trial is part of a broader trend of legal scrutiny on social media platforms concerning their safety and awareness of potential risks to children [6]

We are also continuing to follow that landmark trial about social media addiction in Los Angeles. >> Ahead of Instagram took the stand today in the first time tech giants have faced a jury over allegations their platforms are addictive for young people. Meta, the parent company of Instagram and YouTube are the defendants in this case.The companies dispute the claims that their products deliberately harm children, citing the safeguards they have added over the years and arguing that they are not liable for c ...

Core Business Performance - Meta Platforms' total revenue for Q4 reached $59.9 billion, marking a 24% year-over-year increase, with Family of Apps revenue rising 25% to $58.9 billion [3] - Advertising revenue increased by 24% to $58.1 billion, driven by an 18% rise in ad impressions due to improved ad performance and advertiser demand [3] Reality Labs Segment - The Reality Labs segment experienced a revenue decline of 12% year-over-year to $955 million, with an operating loss of $6 billion attributed to prior-year product launch comparisons and timing of headset procurement [4] - Meta anticipates that Reality Labs' losses in 2026 will be similar to those in 2025, indicating a peak before a steady turnaround, with AI glasses viewed as a significant long-term opportunity [4] Financial Metrics - Earnings per share (EPS) increased by 11% year-over-year to $8.88 in Q4, while full-year revenue rose 22% to $200.9 billion, although EPS dipped 2% to $23.49 [5] - Capital expenditures totaled $22.1 billion, reflecting investments in data centers and infrastructure, with the company generating $14.1 billion in free cash flow and ending the quarter with $81.6 billion in cash and marketable securities, alongside $58.7 billion in debt [5] Strategic Positioning - Meta is evolving beyond social media by investing heavily in artificial intelligence, infrastructure, and new products, which are expected to strengthen its competitive position for the future [1] - The company has developed a new moat that combines AI, scale, data, infrastructure, and distribution, making it challenging for competitors to replicate [6]

Core Viewpoint - Pershing Square Capital Management, led by Bill Ackman, has invested approximately $2 billion in Meta Platforms, anticipating significant long-term benefits from artificial intelligence (AI) despite recent stock price declines [1][1]. Investment Strategy - The hedge fund allocated about 10% of its capital to the Meta investment, indicating a strong belief in the company's undervalued potential [1]. - Ackman’s team noted that Meta's stock has increased by 11% in 2025 and 3% in 2026 through February 9, despite a 7.4% decline over the past year [1][1]. AI Initiatives - Concerns regarding Meta's spending on AI initiatives have affected its stock performance, but the investment team believes AI will enhance content recommendations and personalized advertising, potentially increasing user engagement through AI-driven tools [1][1]. Market Position - Ackman has shown interest in major technology companies, having previously invested in Amazon and Alphabet, positioning Pershing Square as a significant player in the tech investment landscape [1][1].

Bill Ackman is betting big on Meta — saying it believes it to be "one of the clearest beneficiaries of AI integration." The billionaire investor's Pershing Square hedge fund revealed Wednesday that it has invested around 10% of its capital in Meta, or approximately $2 billion, as of the end of December."We believe Meta's current share price underappreciates the company's long-term upside potential from AI and represents a deeply discounted valuation for one of the world's greatest businesses," the presenta ...

Instagram head Adam Mosseri is the first social media boss to take the stand in a case alleging products like those from Meta and YouTube were designed deliberately to addict users. Bloomberg's Alexandra Levine joins Caroline Hyde and Ed Ludlow on “Bloomberg Tech.” -------- Like this video? Subscribe to Bloomberg Technology on YouTube: https://www.youtube.com/channel/UCrM7B7SL_g1edFOnmj-SDKg Watch the latest full episodes of "Bloomberg Technology" with Caroline Hyde and Ed Ludlow here: https://www.youtube.c ...

Group 1 - Bill Ackman's Pershing Square Capital Management has revealed a stake in Meta, indicating a belief that the current share price does not reflect the company's long-term potential from AI [1] - Meta's shares have decreased by 16% over the past 12 months due to concerns regarding its spending on artificial intelligence [2] - Pershing Square argues that the fears surrounding Meta's AI-related expenditures are underestimating the company's long-term upside potential [2]

Core Insights - Meta has launched an AI feature called "Dear Algo" for its Threads platform, allowing users to personalize content recommendations [1][2][3] - The company plans to invest between $115 billion and $135 billion in AI-related capital expenditures this year, nearly double the previous year's spending [3] - Threads currently has 400 million monthly active users and is set to roll out ads globally [4] Group 1: AI Integration - The "Dear Algo" feature enables users to specify the type of content they wish to see by crafting a public post starting with "Dear Algo" [5][6] - Meta is also incorporating AI features into its Facebook service, allowing users to animate profile photos and modify images [2] Group 2: User Engagement and Testing - Once a user shares a request with "Dear Algo," their feed will be adjusted for three days to reflect their content preferences [6] - The feature will initially be tested in the U.S., U.K., Australia, and New Zealand before expanding to other countries [6]

Core Viewpoint - Snap Inc. has been identified as one of the best beaten down growth stocks to buy now, with a recent rating upgrade from Stifel to "Hold" from "Sell" while maintaining a target price of $5.50 [1][2] User Metrics - Snap's Q4-2025 results revealed a global decline in average daily active users (DAU) by 0.6% quarter-over-quarter, dropping from 477 million to 474 million [2] - In North America, the decline was more pronounced, with DAU falling by 4.1% quarter-over-quarter, from 98 million to 94 million [2] Revenue Performance - Snap's advertising revenue for Q4 grew by 5% year-over-year to $1.48 billion, up from $1.41 billion [3] - Overall revenue increased by 10% year-over-year to $1.72 billion, compared to $1.56 billion [3] Partnership and Future Revenue - The revenue uplift from the Perplexity deal, which involves a payment of $400 million over one year, is expected to be delayed as the broader rollout plan has not been finalized [3] - Revenue from this partnership is anticipated to start contributing in 2026 [3] Market Sentiment - Stifel believes Snap's stock price, which has decreased by 37% year-to-date, already reflects the company's setbacks [4] - The median analyst target price for Snap is $8.00, indicating a potential upside of 53.26% despite recent target price cuts [4]