Despite losing $21B on their Reality Labs segment since the beginning of 2022, the company is still bringing in more than $20B in free cash flow, has a nearly 20% net margin and has rebounded significantly since the lows of 2022 as their early investments in AI have hit the mainstream conversation.  They have undoubtedly benefited from the “memeification” of AI this year but their investments in artificial intelligence are second to none. CEO Mark Zuckerberg appears to have taken the hint from large shareholders when it comes to investing in reality labs and while they will continue to do so, he is aware of the need to control costs across the organization.  

We will trim the position back to model weights after a 150+% gain so far in 2023.