Favorable Market Response Lifted Meta Platforms (META)

RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its “RiverPark Large Growth Fund” Q2 2025 investor letter. A copy of the letter can be downloaded here. U.S. equity markets surged in the second quarter, with the S&P 500 Total Return Index rising 10.94% and the Russell 1000 Growth Index returning 17.84%. The fund also surged in the quarter and returned 15.01%. Continued enthusiasm for artificial intelligence, better-than-expected earnings in several large-cap growth sectors, and improving macroeconomic conditions lifted the markets in the quarter. Growth-focused stocks took the lead once more, with the strongest performance coming from sectors like technology, communication services, and certain areas of consumer discretionary. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, RiverPark Large Growth Fund highlighted stocks such as Meta Platforms, Inc. (NASDAQ:META). Meta Platforms, Inc. (NASDAQ:META) is a technology company that develops products to connect people. The one-month return of Meta Platforms, Inc. (NASDAQ:META) was 7.73%, and its shares gained 57.13% of their value over the last 52 weeks. On August 4, 2025, Meta Platforms, Inc. (NASDAQ:META) stock closed at $776.37 per share, with a market capitalization of $1.95 trillion.

RiverPark Large Growth Fund stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its second quarter 2025 investor letter:

“Meta Platforms, Inc. (NASDAQ:META): META delivered a strong quarter as improving ad fundamentals and growing AI monetization prospects drove a rebound in the stock. The company reported approximately 20% revenue growth and expanding operating margins. Engagement in Reels and messaging commerce continued to climb, while Meta’s May AI event showcased early monetization pilots involving its Llama 3 model across WhatsApp and Instagram.

The market responded favorably to Meta’s improving execution and clearer roadmap for AI integration. Ad pricing trends stabilized, and the company’s renewed focus on operational efficiency supported margin expansion. Investors viewed Meta’s AI strategy as complementary to its core ad business, with incremental monetization opportunities ahead.

Meta continues to demonstrate leadership in global digital advertising, with over 3 billion daily active users and some of the most widely used mobile platforms in the world. With improved cost control, expanding monetization layers, and strong free cash flow generation, we continue to view Meta as a compelling long-term holding.”

Meta Platforms, Inc. (META) "Still Has A Low Multiple," Says Jim Cramer

Meta Platforms, Inc. (NASDAQ:META) is in third position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 273 hedge fund portfolios held Meta Platforms, Inc. (NASDAQ:META) at the end of the first quarter, which was 262 in the previous quarter. In the second quarter of 2025, Meta Platforms, Inc. (NASDAQ:META) reported revenue of $47.5 billion, representing a 22% increase, both in reported and constant currency. While we acknowledge the risk and potential of Meta Platforms, Inc. (NASDAQ:META) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Meta Platforms, Inc. (NASDAQ:META) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Meta Platforms, Inc. (NASDAQ:META) and shared the list of AI stocks analysts are watching closely. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.