Rowan Street Capital: Meta Platforms’ (META) Fundamentals Outpace Its Stock Rally

Rowan Street Capital’s Q2 2026 letter argues that Meta Platforms’ business fundamentals are outpacing the recent share price weakness. The fund highlighted strong first-half revenue growth, improving engagement, and AI-driven gains in advertising performance, while noting that the stock has fallen despite these operating improvements. Meta reported 33% year-over-year revenue growth in Q1 to $56.3 billion and 28% growth in Q2 to $60.8 billion, with first-half revenue near $117 billion and trailing-12-month revenue above $228 billion. Management’s AI investments are already boosting usage metrics and ad monetization, but investors remain concerned about full-year AI capex guidance, which has pressured the shares. Overall, the piece is bullish on the long-term business outlook but acknowledges near-term market skepticism around spending discipline and valuation.