Meta Platforms’ (META) AI Journey of Success and Turbulence

Longriver Investment Partners released its “Longriver Partners Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the quarter, the fund returned 11.7% (net), bringing the year-to-date return to 11.4%. This compares to the benchmark, the MSCI AC World USD Net Index, which returned 11.5% for the quarter and 10.0% year-to-date. The Fund has gained 55.6%, compared to 58.0% for the benchmark, since inception. The investment strategy focuses on harnessing the long-term value created by the holding companies. The fund primarily invests in big tech companies known for consistent performance and have built-in opportunities for profit reinvestment. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second quarter 2025 investor letter, Longriver Partners 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 5.69%, and its shares gained 42.93% of their value over the last 52 weeks. On July 9, 2025, Meta Platforms, Inc. (NASDAQ:META) stock closed at $732.78 per share, with a market capitalization of $1.842 trillion.

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

“Meta Platforms, Inc. (NASDAQ:META), in contrast, is using AI to make money today. Behind the scenes, it has built some of the most advanced infrastructure in the world. This has quietly driven stronger-than-expected revenue growth and margin expansion

Meta’s ad platform is becoming increasingly automated. It already has tools that optimise campaigns for a target return on spend. Now it’s building AI systems that can generate creative assets, test variations, and automate entire campaign flows. If it works, the ad loop tightens: better performance, higher margins, and more advertiser lock-in. One expert estimated Meta could improve campaign results by 50 to 100 per cent if CPMs hold steady. That would translate into substantially more spend.

But none of this is visible to the average user on Facebook or Instagram. Meta hasn’t shipped anything like ChatGPT. Llama 4 was solid, but the product layer was missing. As one expert put it, “OpenAI shipped tools, memory, orchestration. Meta shipped a model and a blog post…” (Click here to read the full text)

In another article, we covered Meta Platforms, Inc. (NASDAQ:META) and shared stocks Jim Cramer recently discussed. 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.