Discounted Valuation and AI Compute Potential Create Entry Point in Meta Platforms (META)

Harris Oakmark recently released its third-quarter 2026 investor letter for the "Oakmark Fund". The objective of the fund is to deliver capital appreciation by investing in a diverse set of large-cap US companies. The letter can be downloaded here. The Fund (Investor Class) outperformed the S&P 500 Index for the quarter, driven by strong gains in Information Technology and Health Care, which offset headwinds in Industrials and Materials. The fund returned 3.45% vs. 2.30% for the benchmark. While mega-cap concentration continues to drive broad market returns, it also creates compelling entry points across underappreciated, high-quality companies. By focusing on well-managed businesses selling at discounts to their intrinsic value, patient investors can benefit as the price-value gap narrows over time. In addition, you can check the Fund's top five holdings to determine its best picks for 2026.

In its Q3 2026 investor letter, Oakmark Fund highlighted Meta Platforms, Inc. (NASDAQ:META) as a newly added position. Meta Platforms, Inc. (NASDAQ:META), the parent company of dominant social media platforms, is a multinational technology company that develops products to connect people. On October 14, 2026, Meta Platforms, Inc. (NASDAQ:META) closed at $737.54 per share with a $1.88 trillion market capitalization. Meta Platforms, Inc. (NASDAQ:META) posted an 11.73% YTD gain, trading within a 52-week range of $520.26 to $779.82.

Oakmark Fund stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q3 2026 investor letter

"Meta Platforms, Inc. (NASDAQ:META) is a U.S.-headquartered technology company whose Family of Apps (including Face book, Instagram, and WhatsApp) reaches 3.6 billion daily active users. Growth and returns in Meta's core businesses remain exceptional but investors have grown concerned by the company's large investment in AI. We are confident that the company can monetize AI compute through a combination of core business improvement, new AI businesses and potentially 3rd party compute rental. We be lieve the Family of Apps business is already benefit ting from improved recommendation and ad matching systems. Meta is also off to a strong start with its new personal AI assistant, Muse. With shares trading near their lowest multiple outside the 2022 period, we invested at a meaningful discount to our estimate of intrinsic value."

Meta Platforms, Inc. (NASDAQ:META) holds 5th position on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 254 hedge fund portfolios held Meta Platforms, Inc. (NASDAQ:META) at the end of the second quarter, compared to 262 in the previous quarter. While we acknowledge the potential of Meta Platforms, Inc. (NASDAQ:META) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we discussed Meta Platforms, Inc. (NASDAQ:META) and shared a list of the best growth stocks to buy according to billionaires. In addition, please check out our hedge fund investor letters Q3 2026 page for more investor letters from hedge funds and other leading investors.

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This article is originally published at Insider Monkey.