Meta Platforms (META) Surged Following Strong Earnings

Jackson Peak Capital, an investment management firm, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the quarter, the fund returned +24.0% net compared to MSCI ACWI’s 11.3% return and HFRX Equity Hedge Index’s +4.1% return. The volatility at the end of the first quarter continued in the second quarter. In April, markets declined after the Liberation Day tariff announcement, but recovered later when the administration softened its stance and scaled back the original proposals to calm markets. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Jackson Peak Capital 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 12.39%, and its shares gained 49.97% of their value over the last 52 weeks. On August 12, 2025, Meta Platforms, Inc. (NASDAQ:META) stock closed at $790.00 per share, with a market capitalization of $1.985 trillion.

Jackson Peak Capital stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its second quarter 2025 investor letter:

“Meta Platforms, Inc. (NASDAQ:META) was a contributor as a long. As noted in our Q1 letter, we increased our META position during the February/March market decline. After Q1 weakness, META rebounded by June 30, driven by strong Q1 earnings in late April and broader market recovery.”

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 best good stocks to invest in. 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.