What's behind Meta's record-breaking stock market rally?
Meta shares achieve unprecedented 16-day winning streak as AI investments drive growth, with the tech giant's market cap surpassing $1.8 trillion.
Meta's unprecedented market performance
Meta Platforms has achieved something remarkable – 16 consecutive days of gains, setting a record for any Nasdaq 100 company since 1990. This exceptional run has added 17 per cent to the company's value
The rally has pushed Meta's market capitalisation above $1.8 trillion, cementing its position among the world's most valuable companies. The share price has surged as investors recognise the company's artificial intelligence (AI) success.
Unlike some tech giants still seeking returns on their AI investments, Meta is already demonstrating tangible benefits through improved ad targeting and increased revenue per user. The company's shares have shown remarkable resilience, even maintaining their upward trajectory during broader tech sector selloffs.
AI investments driving growth
Chief Executive Officer (CEO) Mark Zuckerberg's announcement of up to $65 billion in AI investment for 2024 has reinforced market confidence. This substantial commitment suggests the company is investing from a position of strength. Meta's open-source approach to AI development, exemplified by its Llama model, has gained validation following the emergence of DeepSeek, a Chinese AI startup emphasising cost-effective solutions.
The company's performance reflects how AI improvements are already enhancing advertising effectiveness across Meta's billions of users. Zuckerberg's assertion that 2025 will be a "really big year" for AI has further fuelled investor optimism about the company's future growth potential.
Meta technical analysis
As the chart shows, the Meta share price has enjoyed an impressive run. Buyers stepped in during late November, and then in late December and early January. In the latter two cases, the price found support around the 50-day simple moving average (SMA). Investors should monitor these technical indicators while considering their position sizing and risk management.
The consistent upward momentum has created a strong trend, though the extended nature of the move may warrant caution for new positions. Support levels from the previous trading range could become important if profit-taking emerges after this remarkable run. For example, a pullback from current levels could test the December and early January highs at $637.
Meta daily chart
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