Meta (META) Slid Despite Reporting Strong Earnings

3 days ago 3

Soumya Eswaran

Tue, January 20, 2026 astatine 8:16 AM CST 3 min read

Fred Alger Management, an concern absorption company, released its “Alger Spectra Fund” fourth-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. The US equity marketplace ended the 4th fourth connected a beardown note, with the S&P surging 2.7%, maintaining its dependable upward momentum. Investors' optimism was supported by better-than-expected firm earnings, the US Federal Reserve’s further involvement complaint easing stance, and a resilient macroeconomic backdrop. Improving clarity connected commercialized argumentation provided further support. Meanwhile, the 4th was characterized by expanding divergence beneath the Index’s surface. While AI remains the market’s biggest tailwind, it is being scrutinized for funding, limitations, and imaginable to instrumentality investment. The steadfast continues to observe secular trends that contiguous charismatic concern opportunities. Furthermore, U.S. concern spending appears to beryllium rising owed to rising request for AI infrastructure and taxation incentives from the One Big Beautiful Bill. Against this backdrop, Class A shares of the Fund underperformed the Russell 3000 Growth Index successful Q4 2025. The Information Technology and Utilities contributed to the comparative show of the Fund successful the quarter, portion the Health Care and Communication Services sectors detracted from performance. In addition, delight cheque the Fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its fourth-quarter 2025 capitalist letter, Alger Spectra Fund highlighted stocks specified arsenic Meta Platforms, Inc. (NASDAQ:META) arsenic a starring detractor to performance. Meta Platforms, Inc. (NASDAQ:META) is simply a exertion institution that develops products to link people. On January 16, 2026, Meta Platforms, Inc. (NASDAQ:META) banal closed astatine $620.25 per share. One-month instrumentality of Meta Platforms, Inc. (NASDAQ:META) was -6.24%, and its shares gained 1.22% of their worth implicit the past 52 weeks. Meta Platforms, Inc. (NASDAQ:META) has a marketplace capitalization of $1.56 trillion.

Alger Spectra Fund stated the pursuing regarding Meta Platforms, Inc. (NASDAQ:META) successful its 4th fourth 2025 capitalist letter:

"Meta Platforms, Inc. (NASDAQ:META) is the world’s largest social-media company, operating platforms that see Facebook, Instagram, WhatsApp, and Messenger. Shares detracted during the 4th arsenic investors focused connected management’s guidance for materially higher operating expenses and superior expenditures (CapEx) tied to AI infrastructure investments. Management noted that 2026 CapEx is expected to beryllium “notably” higher than 2025, which pressured guardant net and free-cash-flow expectations contempt beardown underlying results. While the institution highlighted continued advertizing momentum and indicated that gross maturation could stay robust into year-end, investors remained acrophobic astir the magnitude and timing of the AI-related CapEx."