In its Q2 2026 letter to investors, Pershing Square Holdings noted that Meta Platforms (META) shares declined 1% in the second quarter and 15% year-to-date, primarily due to increased operating and capital expenditures related to its AI initiatives. Despite this, the investment firm believes Meta is a clear beneficiary of AI, which is driving higher user engagement, better ad monetization, and product innovation. Pershing Square expects Meta's earnings to grow at over 20% annually in the coming years and considers its 18x forward P/E ratio to be a significant undervaluation for a consumer internet giant with 3.6 billion daily active users.