Key Takeaways
- • Bill Ackman, CEO of Pershing Square, says Meta Platforms is "incredibly undervalued" and that the stock's post-earnings drop does not reflect its long-term AI-driven upside, according to CNBC's "Squawk on the Street."
- • Pershing Square disclosed a new position in Meta in February 2026, which Ackman described as representing roughly 10% of the firm's capital, a "deeply discounted valuation" for one of the world's greatest businesses.
- • Ackman forecasts an "amazing 2027" for equities once the Ukraine-Russia and Iran conflicts subside and energy prices and inflation ease.
- • Ackman also reiterated bullish views on Netflix, which he said trades at 18 times earnings, and on Fannie Mae and Freddie Mac, where he is a large shareholder.
Summary
Pershing Square CEO Bill Ackman said on CNBC's "Squawk on the Street" that Meta Platforms is undervalued relative to its artificial intelligence growth potential. Meta shares fell about 6% on the Thursday following its third-quarter earnings report, despite better-than-expected revenue and strong guidance for the current period. Ackman said investors should not judge a stock by its day-one reaction to earnings, citing the short-term orientation of levered market participants. He praised Meta's personal AI agent, Muse, and said the company "has proven that AI is helping them accelerate their business."
Pershing Square first disclosed its Meta position in February, when Ackman cited the company's "long-term upside potential from AI" as representing a deeply discounted valuation. Multiple market commentaries describe the position as roughly 10% of the fund's capital. Ackman also argued that Meta's compute infrastructure investments are necessary and could eventually generate attractive returns, addressing investor concern about AI capital spending.
On the broader market, Ackman said that geopolitical conflicts and elevated inflation and interest rates are restraining an otherwise strong environment. He said a resolution to the Russia-Ukraine conflict and the Middle East situation could reduce energy prices, easing inflation and supporting equities. Per the CNBC coverage, U.S. oil is up 72% in 2026 and Brent crude has risen 83%, while consumer prices rose 3.7% year over year in September.
Ackman also discussed other holdings and positions. He said Netflix, which fell more than 5% after weak advertising and revenue guidance before rebounding about 3%, trades at 18 times earnings, "one of the lowest valuations in history." He reiterated his bullish stance on Fannie Mae and Freddie Mac, arguing that the government-sponsored enterprises have rebuilt their capital and now hold five times the capital they had historically, and calling them the most asymmetric investment he is aware of.
Pershing Square first disclosed its Meta position in February, when Ackman cited the company's "long-term upside potential from AI" as representing a deeply discounted valuation. Multiple market commentaries describe the position as roughly 10% of the fund's capital. Ackman also argued that Meta's compute infrastructure investments are necessary and could eventually generate attractive returns, addressing investor concern about AI capital spending.
On the broader market, Ackman said that geopolitical conflicts and elevated inflation and interest rates are restraining an otherwise strong environment. He said a resolution to the Russia-Ukraine conflict and the Middle East situation could reduce energy prices, easing inflation and supporting equities. Per the CNBC coverage, U.S. oil is up 72% in 2026 and Brent crude has risen 83%, while consumer prices rose 3.7% year over year in September.
Ackman also discussed other holdings and positions. He said Netflix, which fell more than 5% after weak advertising and revenue guidance before rebounding about 3%, trades at 18 times earnings, "one of the lowest valuations in history." He reiterated his bullish stance on Fannie Mae and Freddie Mac, arguing that the government-sponsored enterprises have rebuilt their capital and now hold five times the capital they had historically, and calling them the most asymmetric investment he is aware of.
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