Meta Platforms (META) Fell Along with Other Market and Macro Sensitive Stocks

Jackson Peak Capital, an investment management firm, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the quarter, the fund returned +33.2%, net compared to MSCI ACWI’s ‒ 0.9% return and HFRX Equity Hedge Index’s +0.2% return. Fundamental longs, event-driven longs, and net exposure management led the fund’s outperformance in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-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 15.04%, and its shares gained 39.33% of their value over the last 52 weeks. On June 4, 2025, Meta Platforms, Inc. (NASDAQ:META) stock closed at $687.95 per share, with a market capitalization of $1.73 trillion.

Jackson Peak Capital stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q1 2025 investor letter:

“Meta Platforms, Inc. (NASDAQ:META) was a detractor as a long. We like META as an AI beneficiary and company that is executing at a high level across their platform. During the quarter, we added exposure in early March following the initial ~10% Nasdaq decline (as a counterweight to other positions in the portfolio). However, its stock continued lower along with the market and macro (advertising) sensitive stocks declined further.”

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 potential of Meta Platforms, Inc. (NASDAQ:META) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Meta Platforms, Inc. (NASDAQ:META) and shared Jim Cramer’s successful stock predictions. In addition, please check out our hedge fund investor letters Q1 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.