Here’s What Boosted Meta Platforms (META) in Q2

Kovitz Investment Group Partners, LLC, an investment management company, released its “Kovitz Core Equity Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the strategy returned 7.9% compared to the S&P 500’s 10.9% return. Equity markets saw notable volatility after the President’s “Liberation Day” tariff announcement on April 2nd. The S&P 500 dropped 11% initially but later rallied 25% in the quarter after the tariffs were postponed by 90 days on April 9th. Additionally, you can review the fund’s top 5 holdings to see its best picks for 2025.

In its second-quarter 2025 investor letter, Kovitz Core Equity Strategy 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 4.19%, and its shares gained 56.15% of their value over the last 52 weeks. On August 5, 2025, Meta Platforms, Inc. (NASDAQ:META) stock closed at $763.46 per share, with a market capitalization of $1.918 trillion.

Kovitz Core Equity Strategy stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its second quarter 2025 investor letter:

“Meta Platforms, Inc. (NASDAQ:META) reported stronger than expected growth in advertising revenues in Q1 while slightly lowering its outlook for expenses for 2025. The company’s investments in AI recommendation systems are contributing to increasing user time spent across Facebook and Instagram, while driving improved ad targeting for advertisers. Revenue guidance for the following quarter suggested growth will remain solidly in the double-digit range, better than feared given its exposure to Asia-based advertisers and ecommerce retailers with supply chains dependent on China.”

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MMeta 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 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.