Meta’s AI Push Fuels Historic 16-Day Stock Rally, Nearing $2 Trillion Valuation

Meta’s Stock Soars in Historic 16-Day Winning Streak

Meta, the parent company of Facebook, has achieved a remarkable milestone in stock market performance, with its shares rising for 16 consecutive trading days. This unprecedented streak, the longest for any Nasdaq 100 company since 1990, has propelled Meta’s stock value up by 17%, bringing the company close to a $2 trillion valuation.

The rally was ignited by CEO Mark Zuckerberg’s announcement of over $60 billion in AI spending for the year, a move that has captured investor attention. Unlike some of its tech counterparts, Meta has managed to avoid concerns typically associated with such substantial investments. In contrast, Alphabet experienced stock declines following its announcement of $75 billion in planned capital expenditures.

Meta’s resilience was further demonstrated during the recent market turbulence caused by DeepSeek AI, which led to a $1 trillion market wipeout. While other tech giants faltered, Meta’s stock continued its upward trajectory. Analysts suggest that the open-source nature of DeepSeek, similar to Meta’s own Llama 4 model, may have contributed to the company’s ability to weather the storm.

The company’s fourth-quarter earnings report revealed significant progress in AI adoption among advertisers. Meta reported that over 4 million advertisers are now using its generative AI creative tools, a fourfold increase from just six months ago. This growth, coupled with strategic headcount reductions, has bolstered Meta’s cost-cutting efforts and impressed investors.

Looking ahead, Meta is ramping up its AI initiatives with increased capital expenditures. Zuckerberg has outlined ambitious plans, including the development of a leading AI assistant technology set to launch in 2025. The company aims to create an AI agent with coding skills equivalent to a mid-level engineer by the end of this year.

Perhaps most notably, Zuckerberg anticipates that Meta’s AI assistant could reach 1 billion users by 2025, potentially marking a significant wave of AI adoption in the consumer market. As Meta continues to invest heavily in AI technology, investors and industry observers will be watching closely to see if the company can maintain its momentum and deliver on these ambitious goals.