Overview
- Pershing Square closed its remaining Alphabet stake in the second quarter and redeployed capital into larger positions in Meta and a new Netflix holding.
- The fund boosted its Meta stake by about 20% and bought roughly 13.08 million Netflix shares worth about $934 million, according to Pershing Square disclosures.
- Meta’s latest quarter showed revenue rose 28% year over year to $60.8 billion while EPS fell 13% to $6.18 and free cash flow plunged to $784 million from $8.5 billion a year earlier.
- The firm cited Meta’s heavy AI investment and new products as the reason for the bet; Meta has launched an AI agent called Muse and is pursuing ways to monetize excess AI compute.
- Pershing Square’s move highlights a wider investor tradeoff between backing long‑term AI upside at companies like Meta and Netflix and favoring firms with steadier near‑term cash generation.