Billionaire investor Bill Ackman says Meta Platforms Inc. (NASDAQ:META) has the financial firepower to fund its massive artificial intelligence ambitions, pointing to roughly $82 billion in cash and securities as investors punish the company over surging spending.
“They’ve got 80 billion of cash on the balance sheet, they have no net leverage,” Ackman told CNBC Thursday.
“They could finance whatever they want to do with a turn or two of financial leverage and remain a very strong investment grade company,” he said.
Meta shares fell nearly 8% Thursday after the company raised the lower end of its 2026 capital expenditure forecast to $135 billion, retaining the $145 billion upper limit.
Ackman said the stock was up roughly 5% when he went to sleep on a flight, only to be down 6.5% before his interview.
“These are just short-term traders moving the stock around,” he said.
Meta’s Cash-Generating Power
Meta has spent nearly $86 billion building out its infrastructure in the first nine months of 2026. Remarkably, its business generated almost $97 billion in operating cash flow over the same period, enough to cover that spending and leave roughly $11 billion in free cash flow.
Even after that spending, Meta still ended September with $82.45 billion in cash and marketable securities, although it also carried nearly $81 billion in long-term debt.
The pace of spending is beginning to test that financial strength. Capital expenditure exceeded operating cash flow by $2.12 billion in the third quarter, raising questions about how much more Meta can spend before it needs additional financing.
But Ackman believes that investment is already paying off.
“They’ve proven that AI is helping them accelerate their business,” he said, calling Meta “extremely well positioned” in AI agents.
Third-quarter revenue climbed 26% to $64.6 billion, with AI improvements helping Meta’s advertising operations.
Why Meta Is Preparing to Raise More Money
Even so, Meta is preparing additional financing options.
An October 21 regulatory filing revealed that management expects substantial future capital needs, while an independent board committee warned that borrowing at the scale contemplated could damage its credit ratings.
That raises questions about how far Meta can expand its borrowing, even as Ackman argues it could comfortably take on more debt.
The company plans to introduce nonvoting Class C shares, allowing it to raise equity without diluting CEO Mark Zuckerberg’s voting control.
Ackman said Meta’s materials indicated Zuckerberg would have to sell substantial amounts of stock to pay California’s proposed billionaire wealth tax if it passes. The new shares would allow him to do so without surrendering control.
According to the filing, Zuckerberg agreed to remain a resident of California, or wherever Meta is headquartered, for eight years.
Ackman also argued that departures by wealthy residents would prevent the tax from raising its intended revenue.
On Polymarket, traders put the probability of the tax passing at 23% Thursday, with approximately $3.94 million traded.
Meta’s third-quarter earnings beat did little to stop the selloff, but Ackman remains convinced investors are overlooking its strength.
“This remains an incredibly undervalued stock and that’s why we own it,” he said.
Image: Shutterstock
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