Pershing Square buys Amazon, Alphabet, and Meta at attractive valuations amid AI investments

Pershing Square Capital Management, led by Bill Ackman, has built a concentrated position in three major technology companies—Amazon, Alphabet and Meta Platforms—after valuations became more attractive. The hedge fund held more than 39% of its portfolio assets in these three “monster” AI-related stocks at the end of 2025, with the earliest of the three investments dating back roughly three years.

Buying at attractive valuations

As of Dec. 31, 2025, Pershing Square owned $2.2 billion worth of Amazon, $1.9 billion combined in both share classes of Alphabet, and $1.8 billion worth of Meta Platforms. Together, the three holdings accounted for nearly 40% of the hedge fund’s portfolio.

Ackman’s valuation-focused approach is reflected in the timing of the purchases. Pershing Square initiated its Alphabet position in the first quarter of 2023 at a forward price-to-earnings (P/E) ratio of 16. It added Amazon in April 2025 at a forward P/E of 25, and purchased Meta Platforms in the fourth quarter of 2025 at a P/E of 20.

The article attributes the entry points to periods when market sentiment was weaker: concerns about Alphabet’s competitiveness versus OpenAI’s ChatGPT, trade and tariff uncertainty weighing on Amazon, and Meta’s shares falling after the company said it would increase spending in 2026.

Development: AI spending and capital allocation

Pershing Square highlights the scale of planned AI-related investment across the three companies. For 2026, Alphabet is planning $175 billion to $185 billion in capital expenditures. Amazon has outlays of $200 billion, while Meta is budgeting $115 billion to $135 billion.

The key investor question is whether these investments will generate adequate returns. Pershing Square argues that if shareholders trust management teams to allocate capital in ways that can grow earnings power, there is less reason for criticism—particularly given “robust demand” for the companies’ products and services.

Data and balance-sheet strength

Beyond spending plans, the article points to financial capacity. As of Dec. 31, 2025, the three companies held a combined $331 billion in cash, cash equivalents and marketable securities. This total was described as significantly greater than their combined long-term debt—an advantage the article notes many companies do not have.

Impact: AI progress and business momentum

Pershing Square also cites early signs of AI traction. For Alphabet, Ackman highlighted that AI Overviews has more than 2 billion users, describing it as the world’s most widely used AI product by a significant margin.

For Amazon, the article says Ackman pointed to Amazon Web Services benefiting from strong demand for AI capabilities, and also noted that AI could improve the customer experience within the company’s retail segment.

For Meta, Ackman referenced the potential for AI to strengthen its recommendation engine, increase user engagement, and support advertisers.

Analysis: Ackman’s view on shareholder confidence

With a Buffett-like focus on high-quality businesses and an emphasis on valuation, the article frames Pershing Square’s moves as a vote of confidence in management teams’ capital allocation. It also positions the strategy as relevant for investors seeking exposure to Amazon, Alphabet and Meta Platforms as AI investment cycles accelerate.