Artisan Value Fund Dumps Meta, Adds Amazon in Q1 Portfolio Overhaul

Artisan Partners restructured the Artisan Value Fund portfolio in the first quarter of 2026, exiting four holdings including Meta Platforms while adding Amazon.com as one of its three largest new positions. The fund sold its stakes in Meta, Diageo, Humana, and PayPal, explaining that rising expectations have created a higher hurdle for Meta's future outperformance and that heavy AI investments are likely to push expenses ahead of revenues in the near term.

Simultaneously, the fund initiated positions in Amazon, Universal Music Group, and IQVIA Holdings, citing increased market volatility and equity dispersion as opportunities to identify undervalued companies. Artisan characterized Amazon as a high-quality, wide-moat franchise where reinvestment in AI infrastructure, robotics, and logistics may be obscuring long-term earnings power. Amazon Web Services contributes approximately 60% of operating income, and the company reported 17% year-over-year revenue growth to $181.5 billion in Q1.

Meta itself reported 33% Q1 revenue growth driven by AI integration across Facebook, Instagram, WhatsApp, and Threads advertising platforms. However, its Reality Labs division generated only $402 million in revenue against $4 billion in operating expenses. Meta recently laid off 8,000 employees to curb costs, and its stock trades at 12.6 times operating cash flow, a discount attributed to investor concerns over Reality Labs losses and significant data center capital expenditures. The fund's Q1 performance was further pressured by a market preference for momentum stocks over quality factors, alongside volatility from AI concerns, private credit, and conflict in Iran.