Meta Stock Surges on Historic 16-Day Winning Streak
Meta Platforms' (META) stock has surged in recent weeks, with its 16-day winning streak ending on Tuesday. The stock closed up 17% over that period, closing in on a $2 trillion valuation.
AI Investment Fuels Rally
The rally began late last month after CEO Mark Zuckerberg announced plans to invest over $60 billion in AI in 2023. Meta's AI spending has not raised the same concerns as other tech giants, with Alphabet (GOOGL) seeing its stock fall after announcing a $75 billion capex plan.
Resilience Amid AI Chaos
Meta's stock weathered the storm surrounding DeepSeek AI, an open-source AI that caused a $1 trillion market wipeout. This resilience may be attributed to the similarity between DeepSeek and Meta's Lllama 4 AI, as well as the company's chief AI scientist Yann LeCun's assertion that open-source models are surpassing proprietary ones.
Other Factors Driving Growth
Bullish sentiment has also been driven by Meta's fourth-quarter earnings, which showed a fourfold increase in the adoption of its generative AI tool. Additionally, the company's cost-cutting measures have been well-received.
Continued AI Investment
Zuckerberg reiterated the company's commitment to AI during the earnings call, highlighting plans to release a leading AI assistant in 2025. He also expects Meta to develop an AI agent with coding skills of a mid-level engineer by the end of this year.
Bright Future for AI
Zuckerberg predicts that 1 billion users will adopt AI assistants by 2025, a trend that Meta is well-positioned to capitalize on. With its continued investment in AI, Meta stock is poised for continued growth in the coming years.