{"id":246393,"date":"2026-01-19T15:35:10","date_gmt":"2026-01-19T15:35:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/246393\/"},"modified":"2026-01-19T15:35:10","modified_gmt":"2026-01-19T15:35:10","slug":"accelerated-ai-spending-hit-meta-platforms-meta","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/246393\/","title":{"rendered":"Accelerated AI Spending Hit Meta Platforms (META)"},"content":{"rendered":"\n

Wedgewood Partners<\/a>, an investment management company, released its fourth-quarter 2025 investor letter. The firm anticipates stronger market volatility in the coming years and has moderated its enthusiasm. A copy of the letter can be downloaded here<\/a>. The Wedgewood Composite returned -1.8% (net) in the fourth quarter compared to the S&P 500\u2019s 2.7%, the Russell 1000 Growth Index\u2019s 1.1%, and the Russell 1000 Value Index\u2019s 3.8% returns. YTD, the Composite gained 4.3% compared to 17.9%, 18.6%, and 15.9% returns for the indexes, respectively. Wedgewood Partners\u2019 focus on high-quality stocks has historically worked since 1992, but not in 2025. The letter highlighted poor stock selection, the portfolio\u2019s strong past performers due for valuation correction, and being structurally underweight in AI stocks drove the underperformance. The letter noted that in 2026, crowded AI investments and stretched valuations create pressure on prudent investment decisions. \u00a0In addition, you can check the Fund\u2019s top 5 holdings to determine its best picks for 2025.<\/p>\n

In its fourth-quarter 2025 investor letter, Wedgewood Partners highlighted Meta Platforms, Inc. (NASDAQ:META<\/a>) as a leading detractor to performance. Meta Platforms, Inc. (NASDAQ:META) is a technology company that develops products to connect people. On January 16, 2026, Meta Platforms, Inc. (NASDAQ:META) stock closed at $620.25 per share. One-month return of Meta Platforms, Inc. (NASDAQ:META) was -6.24%, and its shares gained 1.22% of their value over the last 52 weeks. Meta Platforms, Inc. (NASDAQ:META) has a market capitalization of $1.56 trillion.<\/p>\n

Wedgewood Partners stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its fourth quarter 2025 investor letter:<\/p>\n

“Meta Platforms, Inc. (NASDAQ:META) was a leading detractor from performance during the quarter despite reporting +26% revenue growth. Earnings per share grew less (+20%) after the Company ramped up spending related to its long-term AI ambitions. Meta’s social media platforms are as popular as ever, with daily active users rising +8% during the September quarter compared to a year earlier, and users spending +5% more time on its applications. The Company\u2019s social media juggernaut \u2013 with just over 3.5 billion people accessing one of Meta’s platforms every single day – generates enormous volumes of highly valuable data for their global advertisers.<\/p>\n

\"Meta Meta Platforms, Inc. (META) “Still Has A Low Multiple,” Says Jim Cramer <\/p>\n

Meta Platforms, Inc. (NASDAQ:META) is in the third position on our list of\u00a030 Most Popular Stocks Among Hedge Funds<\/a>. As per our database, 273 hedge fund portfolios held Meta Platforms, Inc. (NASDAQ:META) at the end of the third quarter, which was 260 in the previous quarter. \u00a0In the third quarter of 2025, Meta Platforms, Inc. (NASDAQ:META) reported\u00a0revenue<\/a>\u00a0of $51.2 billion, representing an increase of 26% or 25% on a constant currency basis.\u00a0While we acknowledge the potential of Meta Platforms, Inc. (NASDAQ:META) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock<\/a>.<\/p>\n

In\u00a0another article<\/a>, we covered Meta Platforms, Inc. (NASDAQ:META) and shared the list of best stocks to buy in 2026 for beginners. In addition, please check out our hedge fund investor letters Q4 2025<\/a>\u00a0page for more investor letters from hedge funds and other leading investors.<\/p>\n

READ NEXT:\u00a0The Best and Worst Dow Stocks for the Next 12 Months<\/a>\u00a0and\u00a010 Unstoppable Stocks That Could Double Your Money<\/a>.<\/p>\n

Disclosure: None. This article is originally published at Insider Monkey<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Wedgewood Partners, an investment management company, released its fourth-quarter 2025 investor letter. The firm anticipates stronger market volatility…\n","protected":false},"author":2,"featured_media":246394,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[7339,114,28432,85,4008,48030,46,15042,132076],"class_list":["post-246393","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-ai-stock","tag-business","tag-fourth-quarter","tag-il","tag-investment-management-company","tag-investor-letter","tag-israel","tag-meta-platforms","tag-wedgewood-partners"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/246393","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=246393"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/246393\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/246394"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=246393"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=246393"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=246393"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}