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Rowan Street Capital says Meta fundamentals are beating its stock rally
In Rowan Street Capital’s Q2 2026 investor update, it pointed to Meta’s first-half revenue growth and said AI improvements helped boost engagement and advertising.
Rowan Street Capital, an investment management firm, highlighted Meta Platforms, Inc. in its Q1 2026 investor letter and accompanying Q2 2026 update, arguing that Meta’s underlying business performance has remained stronger than its stock rally. The letter says the fund’s overall performance stayed relatively stable in the second quarter, with the portfolio declining about $1 versus the first quarter and producing a net return of -21% for the second half of 2026. It attributes the apparent gap between business progress and share-price movement to a longer-term investing dynamic. On July 31, 2026, Meta shares closed at $556.71, according to the update. It also cited Meta’s one-month return of -7.26% and a -28.29% decline over the past 52 weeks, alongside a market capitalization of $1.42 trillion. Rowan Street Capital said Meta delivered “another exceptional” first half of 2026, with Q1 revenue up 33% year over year to $56.3 billion and Q2 revenue rising 28% year over year to $60.8 billion. The firm noted first-half revenue of about $117 billion, trailing twelve-month revenue above $228 billion, and said Meta’s Family of Apps reached about 3.6 billion people daily, while AI investments contributed to double-digit Instagram time-spent growth and a 9% increase in Facebook video time, tied to improvements in AI-powered recommendations.