Ackman Bets Big on Meta as AI Push and Legal Hurdles Meet

Star investor Bill Ackman is seizing the current market cycle to take a sizable stake in Meta Platforms, the parent company of Facebook, even as the group fights legal battles on multiple fronts. The bet centers on artificial intelligence and the company's smart glasses, but it sits against a backdrop of US lawsuits and EU regulatory scrutiny. Investors must weigh whether the long-term upside justifies the near-term legal risks.

Bill Ackman’s Pershing Square has accumulated roughly a $2 billion position in Meta, disclosed on Wednesday. The size of the stake translates to around 10% of the hedge fund’s portfolio. In an investor presentation, Ackman argued that the current share price underestimates Meta’s long-horizon AI potential and that the company operates one of the world’s strongest business models, currently discounted by the market.

This move comes as many investors remain wary due to Meta’s aggressive capital expenditure trajectory. The company has guided for 2026 capex in the range of $115–$135 billion.

AI glasses as a growth driver

Ackman’s case is bolstered by the rapid momentum seen in Meta’s hardware offshoot. EssilorLuxottica, Meta’s eyewear partner, announced that in 2025 more than 7 million units of Meta AI glasses were sold. For context, 2023 and 2024 combined yielded only about 2 million units.

The eyewear maker posted an 18% revenue rise in Q4, a result that exceeded analysts’ expectations and points to growing consumer adoption of wearable AI devices.

Should investors sell immediately? Or is it worth buying Meta?

Key data at a glance:
- Current price: 668.69 USD (closing price February 11)
- Ackman investment: approx. 2 B USD
- Sold Smart Glasses in 2025: > 7 million
- Q4 2025 revenue: 59.89 B USD (+23.8% YoY)
- Investment plan 2026: 115–135 B USD

Legal headwinds are intensifying

Beyond operational gains, Meta faces considerable legal pressure. In the United States, two cases are ongoing. In New Mexico, the state attorney general alleges that the company did not sufficiently shield children from exploitation. Concurrently, a case in Los Angeles questions whether Meta and Google designed products that promote addictive behaviors among younger users.

Regulatory risk in Europe also looms. The European Commission is reviewing sanctions tied to Meta’s AI stance on WhatsApp. The charge is that Meta could be violating antitrust rules by excluding third-party AI assistants. The investigation could yield interim measures aimed at preserving competition during the process.

Routine insider activity

Markets also noted a transaction by COO Javier Olivan, who on February 9 sold shares valued at about $343,000. As this represents only a small fraction of his holdings, observers regard it as routine profit-taking rather than a move with deeper implications for the company’s fundamentals.

With Ackman aboard, the bullish camp gains a high-profile advocate willing to overlook near-term legal turbulence. The central question now is whether Meta’s substantial AI investments can ultimately preserve profitability, even as regulatory frictions persist.