Here’s What Drives Meta Platforms’ (META) Growth

Sands Capital, an investment management company, released its “Sands Capital Technology Innovators Fund” Q2 2025 investor letter. A copy of the letter can be downloaded here. Technology Innovators focus on pioneering businesses worldwide that serve as key drivers or beneficiaries of significant long-term changes driven by technology. The fund returned 26.0% (net) in the second quarter compared to a 21.9% return for the benchmark, MSCI ACWI Info Tech and Communication Services Index. Easing geopolitical concerns, renewed AI optimism, resilient macroeconomic data, strong corporate earnings, and technical tailwinds boosted the markets for a quick recovery in the quarter. You can check the fund’s top 5 holdings to know more about its best picks for 2025.

In its second quarter 2025 investor letter, Sands Capital Technology Innovators 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 -1.72%, and its shares gained 57.38% of their value over the last 52 weeks. On July 23, 2025, Meta Platforms, Inc. (NASDAQ:META) stock closed at $713.58 per share, with a market capitalization of $1.794 trillion.

Sands Capital Technology Innovators Fund stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its second quarter 2025 investor letter:

“Meta Platforms, Inc. (NASDAQ:META) is the global leader in social networking based on daily active users, engaging nearly half the world’s population each month. Despite macroeconomic pressure on digital advertising, the company grew revenue 16 percent year-over-year in the second quarter, supported by its largest quarterly increase in daily active users in four years and a 10 percent rise in average revenue per user. As revenue growth outpaced expenses, operating income rose 27 percent. Amid a pullback in demand from Asia-based advertisers, these results underscore the resilience of Meta’s dense, liquid advertising platform and the strength of its idiosyncratic growth drivers, supported by its leadership in artificial intelligence.”

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 Q1 2025, Meta Platforms, Inc. (NASDAQ:META) reported revenue of $42.3 billion, up 16% from Q1 2024. 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 AI stocks in the spotlight. Meta Platforms, Inc. (NASDAQ:META) was a leading contributor to Wedgewood Partners’ performance in Q2 2025. 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.