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% 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. Shares have 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 stock has shown remarkable resilience, even maintaining its upward trajectory during broader tech sector selloffs.
AI investments driving growth
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 trading platform 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 stock price – technical analysis
As the chart below shows, the Meta stock 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).
Traders using share dealing services 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 $637.00.
Meta chart
Market implications and business outlook
Meta's success demonstrates how effective AI implementation can translate into tangible business improvements, particularly in advertising efficiency and user monetisation.
The company's relationship with the incoming administration may reduce regulatory concerns, providing additional support for the stock's valuation.
Investors considering online trading in Meta should weigh these positive catalysts against the stock's extended technical indicators.
Meta's performance suggests it could be emerging as one of the primary beneficiaries of AI technology, potentially second only to NVIDIA in terms of immediate commercial impact.
How to trade or invest in Meta
- Research Meta's business model and AI strategy
- Choose whether you want to trade or invest
- Open an account with us
- Search for Meta in our platform or app
- Place your trade
The company's strong momentum and clear AI advantages make it an attractive prospect for both traders and investors, though careful consideration should be given to entry points given the extended nature of the recent rally.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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