Weitz Large Cap Equity Fund on Meta Platforms, Inc.
Thesis
Meta is a major hyperscaler and AI service-provider holding in the portfolio. The shares lagged in the second quarter as investors became more discerning about the buyers of AI infrastructure. The fund continues to view Meta as competitively well positioned and capable of earning reasonable returns on its substantial capital spending.
“We continue to believe that all five companies are competitively well positioned and poised to earn reasonable returns on their voracious capital spending.”
Key risks
- Investors are increasingly scrutinizing whether heavy AI capital spending will generate acceptable returns.