Pershing Square Capital Management's investment in Meta Platforms has gained nearly $20 million in 2026, marking a positive turn for the position after earlier volatility. The stake, initiated in the fourth quarter of 2025, is now worth $1.78 billion, reflecting a modest recovery from earlier losses. The gain represents a small but notable improvement for the hedge fund's sixth-largest holding.

Ackman announced the new stake in Meta during an investment presentation in February 2026, ahead of the official 13F filing disclosure. Pershing Square Capital Management purchased 2,673,569 shares in the fourth quarter, later reducing the position slightly to 2,660,861 shares in the first quarter. The exact purchase date remains unknown, though analysts point to November following Meta's third-quarter earnings report.

Meta stock traded between $581.25 and $759.19 in the fourth quarter, with the low set on Nov. 19, 2025, and the high on Oct. 29, 2025. Based on these prices, the stock is down 12.1% from the fourth quarter high but up 14.8% from the lows. Using the end of the fourth quarter as a baseline, the position was worth $1,756,407,737.49 at the end of 2025 and has since risen to $1,776,204,543.33.

The Meta stake represents approximately 11% of Pershing Square's assets, making it a significant but not dominant holding. Ackman has expressed strong bullishness on Meta, citing its leadership in digital advertising and potential as a beneficiary of AI integration. "We believe Meta's current share price underappreciates the company's long-term upside potential from AI," Pershing Square stated in its presentation.

A second-quarter 13F filing, expected by Aug. 14, will reveal whether Pershing Square has maintained or adjusted its Meta position. Ackman has recently increased his bullishness on Meta and Microsoft Corporation while selling stakes in Alphabet Inc. Investors are watching closely to see if these bets will pay off as the Magnificent Seven stocks continue to diverge in performance.

Meta Platforms Inc. is facing intensified regulatory scrutiny from the European Union over the allegedly addictive design of Facebook and Instagram. A preliminary report by the European Commission found that Meta breached the Digital Services Act by failing to adequately evaluate risks posed by features such as infinite scroll, autoplay, and push notifications to the physical health of minors and vulnerable adults. If confirmed, these violations could result in fines of up to 6% of Meta's annual revenue, totaling nearly $12 billion.

The investigation focuses on specific design choices, including infinite scroll, autoplay, push notifications, and personalized recommendations. Meta has contested the preliminary findings, stating they do not reflect the measures it has implemented to protect teenagers. The company highlighted Teen Accounts, which allow parents to set daily screen time limits, as evidence of its compliance efforts.

This EU action coincides with significant legal challenges in the United States. A U.S. federal judge recently allowed most of a lawsuit by 29 state attorneys general against Meta to proceed. The lawsuit alleges Meta intentionally designed its platforms to encourage compulsive use among children while concealing mental health risks and violating the Children’s Online Privacy Protection Act (COPPA).

The regulatory pressure extends beyond Meta to other Big Tech firms. The EU’s top court recently upheld a record $4.7 billion antitrust fine against Alphabet Inc. regarding its Android operating system. Additionally, Apple Inc. lost a challenge against the European Commission, which classified its App Store and iOS as DMA "gatekeepers." This decision reinforces the Digital Markets Act, which imposes strict obligations on major tech firms and allows fines of up to 10% of global annual revenue for violations.