From Metaverse Mess To Ai Powerhouse: Zuckerberg's Comeback Is Complete

The Facebook parent's record 16-day rally has been driven by all manner of news - even the kind that has pressured its megacap rivals - pushing its valuation towards US2-trillion for the first time.

"I have long viewed Meta as the biggest beneficiary of AI outside of maybe Nvidia, and I think more people are coming around to that idea," said Conrad van Tienhoven, a portfolio manager at Riverpark Capital.

While the likes of Microsoft and Google face questions on when they will see a return on their billions spent on AI, "Meta spent the money on AI solutions that have had an immediate impact on how it targets and measures ads, the outcome of which has been faster growth and a higher average revenue per user".

The stock has seen the longest winning streak of any current Nasdaq 100 Index component going back to 1990. It added more than 17 over the surge, bringing its market capitalisation above 1.8-trillion. Despite the gain, it's one of the cheapest Big Tech plays.

The firm's results underlined how AI is flowing through to its financials, improving how ads are targeted to its billions of users. Zuckerberg said 2025 would be a "really big year" for AI. Then, Meta on Monday began notifying staff of job cuts as it focuses on AI talent.