Meta Stock Falls, Ending Winning Streak as Tech Sector Struggles
Meta Platforms (META) shares declined on Tuesday, snapping a 20-session winning streak on Wall Street. The social media giant's stock lost 2.76%, its steepest decline since December 18.
The positive trend had persisted since mid-January, extending through President Trump's inauguration and the company's earnings release on January 29.
Despite the setback, Meta's stock has gained 17% over the past month and 22% year-to-date. The rally continued even after CEO Mark Zuckerberg announced планы на spending $65 billion on AI data center capital expenditures this year, exceeding the $40 billion planned for 2024.
Analysts believe plans to establish a data center in Richland Parish, Louisiana, the size of a substantial portion of Manhattan, contribute to Meta's success.
Meta's gains contrast with struggles faced by other Big Tech companies in the early weeks of 2025. Google parent Alphabet (GOOG, GOOGL), Apple (AAPL), and Microsoft (MSFT) have each lost more than 2% year-to-date, while Tesla (TSLA) has declined over 12%. Amazon (AMZN) has gained 3% year-to-date but lost 1.7% over the past month.
Meta's resilience is attributed to several factors, including the belief that its investments in artificial intelligence (AI) are outperforming those of rivals.
"They've used [their AI investments] largely to drive their business where ... other companies have been trying to be a little bit more all things to all people," said Zeus Kerravala, founder and principal analyst at ZK Research.
Meta is investing heavily in AI technologies to enhance its advertising business and user engagement.
CFO Susan Li stated that 4 million advertisers are using the company's generative AI tools to create ads, up from 1 million six months ago. This makes AI more appealing to investors.
Meta also received a boost from AI startup DeepSeek, which unveiled its open-source AI model, comparable to ChatGPT and other Silicon Valley AI companies. DeepSeek's open-source approach aligns with Zuckerberg's decision to do the same with Meta's Llama models.
Analysts suggest that the plan could generate a steady revenue stream in the future if large organizations license the software.