Why Meta Platforms Stock Jumped 18% in January
From Nasdaq: 2025-02-06 10:22:06
Shares of Meta Platforms (NASDAQ: META) surged last month due to a potential TikTok ban, a close relationship with Trump, increased investment in AI, and the DeepSeek revelation. The stock also saw a boost from stellar fourth-quarter earnings results, closing the month up 18%. (Source: nasdaq.com)
Meta had a strong 2024 with soaring stock prices, impressive quarterly results, and the most used AI assistant, Meta AI. Investors are optimistic about the company’s future trends and potential benefits from negative attention around TikTok. Meta also outperformed in the AI sector and delivered a significant blowout earnings report. (Source: nasdaq.com)
Following the inauguration, stocks rose broadly, and Meta is expected to benefit from a friendlier business environment under the Trump administration. Despite a challenging week for AI stocks, Meta remained a winner, closing up 2%. The company’s strong performance is attributed to its open-source approach and lack of cloud infrastructure business. (Source: nasdaq.com)
Meta’s CEO Mark Zuckerberg anticipates Meta AI to have over 1 billion users by year-end, with promising growth in other areas like Ray-Ban smart glasses. While revenue growth may slow in the first quarter, Meta remains at the forefront of AI and continues to expand its user and advertising base. The stock remains a buy despite previous surges. (Source: nasdaq.com)
Investors are advised to consider other stock options besides Meta Platforms, as the Motley Fool Stock Advisor team has identified 10 best stocks for potential high returns. Meta Platforms did not make the list, but the selected stocks have shown the potential for significant growth in the coming years. Stock Advisor offers guidance on building a successful portfolio and has outperformed the S&P 500 since 2002. (Source: nasdaq.com)
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