Here’s Why Artisan Value Fund Sold Meta Platforms (META)

Artisan Partners, an investment management company, released its first-quarter 2026 investor letter for “Artisan Value Fund”. A copy of the letter is available to download here. The Funds’ Investor Class: ARTLX, Advisor Class: APDLX, and Institutional Class: APHLX returned -3.54%, -3.50%. and 3.50%, respectively, in Q1 vs, 2.10% return for the Russell 1000® Value Index. Performance was impacted by a market favoring momentum-driven stocks over quality factors, alongside company-specific setbacks. In Q1 2026, the US equity market showed mixed results: large-cap indices declined, while mid- and small-cap stocks gained modestly, reflecting a gradual broadening in market participation. Volatility increased, driven by concerns over artificial intelligence and private credit, and further escalated due to the outbreak of conflict in Iran. Despite uncertainty, the Fund focuses on identifying companies that can create value through cycles, particularly where market dislocations provide attractive entry points. In addition, please check the Fund’s top five holdings to know its best picks in 2026.

In its first-quarter 2026 investor letter, Artisan Value Fund highlighted STOCKS LIKE Meta Platforms, Inc. (NASDAQ:META). Meta Platforms, Inc. (NASDAQ:META), the parent company of dominant social media platforms, is a multinational technology company that develops products to connect people. On May 22, 2026, Meta Platforms, Inc. (NASDAQ:META) closed at $610.26 per share. One-month return of Meta Platforms, Inc. (NASDAQ:META) was -10.46%, and its shares lost 2.68% over the past 52 weeks. Meta Platforms, Inc. (NASDAQ:META) has a market capitalization of $1.55 trillion.

Artisan Value Fund stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q1 2026 investor letter:

“In addition to sales of Humana and PayPal, we also exited our positions in social technology leader Meta Platforms, Inc. (NASDAQ:META) and beverages company Diageo. While we believe Meta remains a great company, with a strong balance sheet, expectations have risen, creating a higher hurdle for future outperformance. Additionally, we believe expenses are likely to grow faster than revenues in the near term as Meta invests heavily in AI.”

Meta Platforms, Inc. (NASDAQ:META) holds 5th position on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 256 hedge fund portfolios held Meta Platforms, Inc. (NASDAQ:META) at the end of the fourth quarter, compared to 273 in the previous quarter. Meta Platforms, Inc. (NASDAQ:META) reported total Q1 2026 revenue of $56.3 billion, up 33% or 29% on a constant currency basis. 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.