What happens to stocks if AI loses momentum?
Meta Platforms Inc (NASDAQ:META). stock has reached an all-time high, hitting a price of 744.27 USD, with InvestingPro data showing the company now commands a market capitalization of $1.87 trillion. According to InvestingPro’s Financial Health assessment, Meta maintains a "GREAT" overall score of 3.38 out of 5. This milestone marks a significant achievement for the company, reflecting strong investor confidence and robust market performance. Over the past year, Meta has experienced a remarkable 46.92% increase in its stock price, with analyst targets ranging from $525 to $935. The company’s impressive 81.77% gross profit margin and strong revenue growth of 19.37% underscore its resilience and growth potential in the tech sector. The surge in stock value can be attributed to Meta’s continued innovation and expansion in digital spaces, drawing sustained interest from investors and analysts alike. With 16+ additional ProTips and comprehensive analysis available on InvestingPro, investors can gain deeper insights into Meta’s financial health and growth prospects.
In other recent news, Meta Platforms is actively seeking to raise $29 billion in private funding to boost its artificial intelligence expansion, focusing on constructing data centers across the United States. This funding initiative includes $3 billion in equity and $26 billion in debt, with Morgan Stanley (NYSE:MS) advising on the arrangements. In a separate development, Meta has entered into four new clean energy agreements with Invenergy, totaling 791 megawatts of solar and wind energy, to support its operations and data center growth. These agreements nearly double the companies’ previous clean energy procurement to 1,800 megawatts. Additionally, Meta has recruited Trapit Bansal, a former OpenAI researcher, to enhance its AI reasoning capabilities. The company has also been in acquisition discussions with Runway AI, a startup specializing in AI-powered video content, although these talks have not progressed to a formal offer. Meanwhile, UBS has raised its price target for Meta to $812, citing the company’s long-term revenue potential from AI initiatives like Business Messaging and Meta AI. These developments reflect Meta’s strategic focus on expanding its AI capabilities and infrastructure.
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