Tiger Global Management, founded by Chase Coleman, reduced its holding in Meta Platforms, Inc. by 62.6% in a filing submitted to the U.S. Securities and Exchange Commission on November 14 2025. The hedge fund’s stake fell to 2.8 million shares, a position valued at roughly $2.1 billion at current market levels.
Meta’s Q3 2025 results, released the week before the filing, showed revenue of $51.24 billion and a net income of $2.71 billion. Operating margin contracted to 40% from 43% in the prior year, largely because the company is investing heavily in artificial‑intelligence infrastructure, a move that has increased capital expenditures and pressured short‑term profitability.
Tiger Global’s divestment is part of a broader portfolio rebalancing that also saw the firm add positions in Netflix and MongoDB while exiting holdings in Eli Lilly and CrowdStrike. The shift mirrors a trend among large hedge funds in Q3 2025 to reduce exposure to the “Magnificent Seven” technology stocks and reallocate capital toward software, e‑commerce, and healthcare sectors.
Investor sentiment toward Meta was negative after the company’s Q3 earnings, as analysts and market participants questioned the return on the $600 billion earmarked for AI data‑center expansion. The concern centers on whether the substantial spending will translate into sustainable revenue growth in the near term.
Management emphasized Meta’s transformation into a frontier AI company. CEO Mark Zuckerberg highlighted the strategic importance of front‑loading AI capacity, while CFO Susan Li noted that capital expenditures will rise significantly in FY2025 and beyond to support the company’s AI ambitions.
The stake reduction signals caution among institutional investors about Meta’s high AI‑related capital outlays and the resulting margin compression. Nevertheless, Meta’s advertising business remains robust, and the company’s long‑term prospects hinge on its ability to monetize AI investments and maintain competitive advantage in the evolving digital advertising landscape.
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