Meta's AI Edge Drives Gains Amid Tech Slump
Meta's (META) stock experienced a setback on Tuesday, ending its 20-day winning streak on Wall Street. Despite this dip, Meta remains up 17% over the past month and 22% year-to-date. The positive performance contrasts with the struggles of other Big Tech companies in the early weeks of 2025.
Meta's strong showing is attributed to its focus on artificial intelligence (AI), which has yielded better returns than rivals like Google and Microsoft. Zeus Kerravala of ZK Research notes that Meta's AI investments are driving its business, while other companies take a broader approach.
Meta's AI investments have led to increased user engagement and ad revenue. CFO Susan Li reported that 4 million advertisers are now using Meta's AI tools, a significant increase from six months ago.
Moreover, Meta's partnership with AI startup DeepSeek, which offers open-source AI software, has further solidified its AI strategy. Analysts believe this move could generate recurring revenue through software licensing.