Meta Platforms (META): Wedgewood Partners' Top YTD Performer

Wedgewood Partners, an investment management company, released its third-quarter 2025 investor letter. The letter is available for download here.  AI stocks remain the favorite topic of Wall Street in the third quarter. In the third quarter, Wedgewood Composite’s net return was 5.9% compared to the Standard & Poor’s 8.1%, the Russell 1000 Growth Index’s 10.5%, and the Russell 1000 Value Index’s 5.3% return for the same period. In addition, you can check the fund’s best 5 holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Wedgewood Partners 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 -3.60%, and its shares gained 30.08% of their value over the last 52 weeks. On October 21, 2025, Meta Platforms, Inc. (NASDAQ:META) stock closed at $733.27 per share, with a market capitalization of $1.801 trillion.

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

"Meta Platforms, Inc. (NASDAQ:META) also has a large, installed data center footprint and has expanded dramatically over the past several years. While the stock was not a top performer during the quarter, it has been a top performer year to date. The Company finished 2024 with over $200 billion in gross property plant and equipment and capitalized leases, up $135 billion from five years earlier. Yet it managed to take annual gross cash lows from $29 billion in 2019 to $82 billion in 2024. These capex investments have yielded astonishingly returns. The Company has been cloud-native for over a decade and also incepted one of the most important software libraries used by most AI labs today (PyTorch). The hardware and software infrastructure ecosystem within Meta Platforms and the returns on those investments have proven that Meta is hardly speculative with its large long-term spending plans."

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 potential of Meta Platforms, Inc. (NASDAQ: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.

In another article, we covered Meta Platforms, Inc. (NASDAQ:META) and shared the list of AI stocks making moves on Wall Street. 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.