Meta Platforms (META): An Example of the Strength of Long-Term Investment

Rowan Street Capital, an investment management company, has recently released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund remained unchanged in the third quarter (+0.22%), making the YTD returns through September 30, 2025, to +20.4% net of fees compared to the S&P 500’s +14.8% year-to-date gain. Over the past three years the firm’s capital compounded at approximately +54.2% annually (net), delivering a +266% cumulative return — more than doubling the S&P 500’s +24.9% annualized gain over the same period. The fund’s performance was driven by its commitment to process refined through years of experience, mistakes, and reflection. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Rowan Street 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 -3.58%, and its shares gained 30.11% of their value over the last 52 weeks. On October 22, 2025, Meta Platforms, Inc. (NASDAQ:META) stock closed at $733.41 per share, with a market capitalization of $1.84 trillion.

Rowan Street Capital stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its third quarter 2025 investor letter:

“Meta Platforms, Inc. (NASDAQ:META) has been our largest holding for several years and remains one of the best examples of what long-term ownership in an exceptional business ca deliver. Since our initial purchase more than seven years ago, Meta has compounded over 21% annually — a testament to its enduring competitive advantages, operation excellence, and the compounding power of time. We’ll keep our commentary brief here, as we’ve discussed Meta extensively in prior letters — its journey illustrates the benefits of patience, conviction, and alignment with a world-class founder-operator.”

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

Meta Platforms, Inc. (NASDAQ:META) is in the third position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 260 hedge fund portfolios held Meta Platforms, Inc. (NASDAQ:META) at the end of the second quarter, which was 273 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 trending AI stocks on Wall Street’s radar. In addition, please check out our hedge fund investor letters Q3 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.