Summary
- Pershing Square said it invested $2 billion (about 2.9 trillion won)—roughly 10% of its capital—into Meta.
- Pershing Square highlighted Meta’s long-term AI growth potential and what it sees as the stock’s undervaluation.
- Pershing Square dismissed concerns about excessive AI investment, emphasizing the long-term upside potential of AI-related spending.
Forecast Trend Report by Period
Pershing Square, the hedge fund led by billionaire investor Bill Ackman, has made a large-scale equity investment in Meta, the operator of Facebook and Instagram.
According to CNBC on the 11th (local time), Pershing Square said in materials for an investor presentation that as of end-December it invested $2 billion (about 2.9 trillion won)—roughly 10% of its capital—into Meta. Pershing Square said that "Meta’s long-term artificial intelligence (AI) growth potential is undervalued" and that "the current share price is relatively undervalued despite the company being one of the best in the world."
Meta shares currently trade at about 22 times forward price-to-earnings (P/E) for the next 12 months, which Pershing Square views as undervalued given the potential profit growth AI could deliver. Meta closed at $668.69 in New York trading that day, down 0.3% from the previous session.
Meta has said it expects capital expenditures of up to $135 billion this year. Pershing Square also dismissed concerns in the market about excessive AI investment. It said the "concerns about AI spending stem from underestimating the long-term upside potential expected from AI."
Reporter Kim Dong-hyun 3code@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
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