Meta Platforms (META) Pauses Hiring in AI Division

Meta Platforms, Inc. (NASDAQ:META) is one of the Top Technology Stocks to Buy According to Hedge Funds. On August 20, Reuters, while quoting WSJ, highlighted that Meta Platforms, Inc. (NASDAQ:META) paused its hiring in the AI division after bringing over 50 researchers and engineers. Furthermore, CNBC, while quoting a statement shared by the company’s spokesperson, highlighted that the pause reflects some basic organizational planning. Notably, Meta Platforms, Inc. (NASDAQ: META) continues to spend significantly on AI this year.

CNBC also reported that the company acquired Alexandr Wang, founder of Scale AI. In the Q2 2025 earnings call, the company highlighted that it continues to build an elite, talent-dense team, with Nat Friedman leading its AI Products and Applied Research. Meta Platforms, Inc. (NASDAQ:META) stated that Meta AI’s reach remains healthy, with over 1 billion monthly actives. The company’s focus revolves around making Meta AI the leading personal AI. During the call, Meta Platforms, Inc. (NASDAQ:META) highlighted that it expects another year of significant CapEx dollar growth in 2026 as it continues to aggressively pursue opportunities to bring additional capacity online to address the needs of its AI efforts and business operations.

Baron Funds released its Q2 2025 investor letter. Here is what the fund said:

“Shares of Meta Platforms, Inc. (NASDAQ:META), the world’s largest social network, rose 28.2% this quarter on impressive top-line growth with revenues growing 19% year-on-year in constant currency and solid forward guidance. Meta is already seeing solid returns on its AI investments across its core business, with improved content recommendations driving increased time spent on the platform, and enhanced ad targeting and ranking delivering higher conversion rates and stronger return on ad spend. Our industry checks also suggest strong advertiser adoption and satisfaction, including in newer areas such as AI-powered creative tools and business messaging. Meta continues to manage costs effectively and remains focused on profitable growth. Over the long term, we believe Meta is well positioned to leverage its leadership in mobile advertising, massive user base, innovative culture, strength in generative AI research, and technological scale, with additional monetization opportunities ahead.”

While we acknowledge the potential of META as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now

Disclosure: None. This article is originally published at Insider Monkey.