What happened
Sumitomo Mitsui DS Asset Management Co. increased its holding in Meta Platforms(META -0.57%) by 12,468 shares during fiscal 2025's second quarter, according to a regulatory filing published July 10, 2025 (SEC filing). The purchase, valued at $7.7 million, brings the investment firm's total position to 331,918 shares, worth $245 million at the July 10 close. The fund reported 759 total positions after the period.
What else to know
The fund bought additional Meta shares, bringing the stake to 2.21% of its 13F assets under management as of Q2 2025. Other things to know about Meta:
- Meta Platforms closed at $720.92 on July 14, 2025, up 44.5% over the past year, outperforming the S&P 500 by 32.9 percentage points.
- Dividend yield stands at 0.29%; forward price-to-earnings ratio is 28.4.
Company overview
| Metric | Value |
|---|---|
| Current stock price | $715.65 |
| Market capitalization | $1.81 trillion |
| Revenue (TTM) | $170.36 billion |
| Net income (TTM) | $66.64 billion |
Note: TTM figures are current as of March 31, 2025.
Company snapshot
- Operates in two segments: Family of Apps (Facebook, Instagram, Messenger, WhatsApp) and Reality Labs (augmented and virtual reality hardware and software).
- Generates revenue primarily through digital advertising across its social media platforms.
- Serves a global customer base, including individuals, small businesses, and large enterprises seeking digital engagement and advertising solutions.
Meta Platforms is a global leader in social media and digital connectivity, operating at significant scale with a diversified product portfolio. The company's strategy centers on expanding its advertising ecosystem and investing in next-generation technology such as virtual and augmented reality. Meta's competitive advantage lies in its massive user base, advanced data infrastructure, and continuous innovation across digital communication platforms.
Foolish take
Meta Platforms is in a prime position to leverage artificial intelligence (AI). That’s because it has an absolutely enormous, highly engaged audience from which it can pull massive amounts of data and to which it can roll out and test its products easily. With over 3.4 billion daily active users across its "Family of Apps," Meta doesn't need to work to build an audience from scratch, allowing them to hone their AI features instead.
AI is already boosting Meta’s advertising effectiveness, and it’s possible that soon, much of the creative assets for advertisers could be created through Meta’s AI, leading to companies spending more on the ad campaign itself rather than its creation.
Meta’s financial picture looks great with strong free cash flows and massive shareholder equity. In the worst quarter of the past year, the company still managed to deliver earnings per share (EPS) growth of 36.5% year over year.
Finally, Meta stock is one of the more attractively priced among its big tech peers, trading at a reasonable 28 times forward earnings.
Glossary
- 13F filing: A quarterly report filed by institutional investment managers disclosing their equity holdings to the SEC.
- Assets under management (AUM): The total market value of investments managed by a fund or investment firm on behalf of clients.
- Exposure: The amount of capital or percentage of a portfolio invested in a particular asset or sector.
- Stake: The total ownership or holding of a particular security by an investor or fund.
- Dividend yield: Annual dividends paid by a company as a percentage of its current share price.
- Forward price-to-earnings ratio: A valuation metric comparing a company's current share price to its forecasted earnings per share.
- Outperforming: Achieving a higher return than a benchmark index or comparable investment.
- Family of Apps: Meta's suite of social platforms, including Facebook, Instagram, Messenger, and WhatsApp.
- Reality Labs: Meta's division focused on developing augmented and virtual reality hardware and software.
- Reportable assets: Investments that must be disclosed in regulatory filings, such as the SEC's 13F report.
- Quarterly period (Q2): The second three-month period of a company's financial year, often used for reporting results.
- Position: The amount of a particular security held in a portfolio or by an investor.