Sharp Rise in Capital Expenditure Weighed on Meta Platforms’ (META) Performance

2 hours ago 1

Soumya Eswaran

Tue, February 10, 2026 astatine 8:17 AM CST 3 min read

Sustainable Growth Advisers (SGA), an concern absorption company, released its fourth-quarter capitalist missive for its “U.S. Large Cap Growth Strategy.” A transcript of the missive tin beryllium downloaded here. In Q4 2025, the Portfolio returned 0.3% (Gross) and 0.2% (Net) compared to 1.1% instrumentality for the Russell 1000 Growth Index and 2.7% summation for the S&P 500 Index. Rising volatility, coupled with broadening marketplace leadership, improved the portfolio’s comparative show successful the 2nd fractional of the quarter. In 2025, the Portfolio faced its astir challenging years since the firm's inception successful 2003. After a challenging year, the steadfast is encouraged by the robust maturation imaginable successful its portfolio and its historically charismatic comparative valuation. Progressing further, the portfolio is well-positioned to summation from a displacement distant from precocious momentum dynamics successful U.S. markets and a broadening of marketplace leadership. Please reappraisal the Strategy’s apical 5 holdings to summation insights into their cardinal selections for 2025.

In its fourth-quarter 2025 capitalist letter, SGA U.S. Large Cap Growth Strategy highlighted Meta Platforms, Inc. (NASDAQ:META) arsenic a notable detractor from performance. Meta Platforms, Inc. (NASDAQ:META) is simply a exertion institution that develops products to link people. On February 9, 2026, Meta Platforms, Inc. (NASDAQ:META) banal closed astatine $677.22 per share. One-month instrumentality of Meta Platforms, Inc. (NASDAQ:META) was 7.31%, and its shares mislaid 5.92% of their worth implicit the past 52 weeks. Meta Platforms, Inc. (NASDAQ:META) has a marketplace capitalization of $1.713 trillion.

SGA U.S. Large Cap Growth Strategy stated the pursuing regarding Meta Platforms, Inc. (NASDAQ:META) successful its 4th fourth 2025 capitalist letter:

"Meta Platforms, Inc. (NASDAQ:META) was a detractor during the quarter, contempt delivering beardown top-line results, arsenic the company’s robust gross maturation of 26% and accelerating idiosyncratic engagement were overshadowed by a important summation successful superior expenditure and operating disbursal guidance. While engagement and advertisement show continued to improve, the institution raised its capex outlook again, with expenses expected to turn implicit 30%, outpacing gross revisions and pressuring near-term profitability. Despite these headwinds, Meta’s enactment successful societal discovery, show advertising, and its quality to productize AI for consumers presumption the institution good for beardown double-digit gross maturation implicit the adjacent 3 years. While the company’s semipermanent positioning successful AI remains compelling, we lowered the people value to an mean value connected concerns astir dense increases successful AI superior expenditures, aboriginal trimming the presumption backmost to target."