Accelerated AI Spending Hit Meta Platforms (META)

2 weeks ago 14

Soumya Eswaran

Mon, January 19, 2026 astatine 8:34 AM CST 4 min read

Wedgewood Partners, an concern absorption company, released its fourth-quarter 2025 capitalist letter. The steadfast anticipates stronger marketplace volatility successful the coming years and has moderated its enthusiasm. A transcript of the missive tin beryllium downloaded here. The Wedgewood Composite returned -1.8% (net) successful the 4th fourth compared to the S&P 500’s 2.7%, the Russell 1000 Growth Index’s 1.1%, and the Russell 1000 Value Index’s 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’ absorption connected high-quality stocks has historically worked since 1992, but not successful 2025. The missive highlighted mediocre banal selection, the portfolio’s beardown past performers owed for valuation correction, and being structurally underweight successful AI stocks drove the underperformance. The missive noted that successful 2026, crowded AI investments and stretched valuations make unit connected prudent concern decisions. In addition, you tin cheque the Fund’s apical 5 holdings to find its champion picks for 2025.

In its fourth-quarter 2025 capitalist letter, Wedgewood Partners highlighted Meta Platforms, Inc. (NASDAQ:META) arsenic a starring detractor to performance. Meta Platforms, Inc. (NASDAQ:META) is simply a exertion institution that develops products to link people. On January 16, 2026, Meta Platforms, Inc. (NASDAQ:META) banal closed astatine $620.25 per share. One-month instrumentality of Meta Platforms, Inc. (NASDAQ:META) was -6.24%, and its shares gained 1.22% of their worth implicit the past 52 weeks. Meta Platforms, Inc. (NASDAQ:META) has a marketplace capitalization of $1.56 trillion.

Wedgewood Partners stated the pursuing regarding Meta Platforms, Inc. (NASDAQ:META) successful its 4th fourth 2025 capitalist letter:

"Meta Platforms, Inc. (NASDAQ:META) was a starring detractor from show during the 4th contempt reporting +26% gross growth. Earnings per stock grew little (+20%) aft the Company ramped up spending related to its semipermanent AI ambitions. Meta's societal media platforms are arsenic fashionable arsenic ever, with regular progressive users rising +8% during the September 4th compared to a twelvemonth earlier, and users spending +5% much clip connected its applications. The Company’s societal media juggernaut – with conscionable implicit 3.5 cardinal radical accessing 1 of Meta's platforms each azygous time - generates tremendous volumes of highly invaluable information for their planetary advertisers.