Meta Platforms (NASDAQ: META) stocks emerged as one of the top performers last month. The surge in the company’s stock value was sparked right after the presidential inauguration, driven by several factors including the potential prohibition of TikTok, closer ties with President Donald Trump, increased investments in artificial intelligence (AI), and the unveiling of DeepSeek.
The stock experienced a significant upswing at the close of the month following an outstanding fourth-quarter earnings report.
As per data from S&P Global Market Intelligence, Meta’s stock concluded the month with an 18% gain. The upward trajectory became particularly notable towards the end of the month, as depicted in the chart following the inauguration.
META data by YCharts
Meta’s Remarkable Rise
Meta had an exceptional year in 2024, with its stock prices soaring, quarterly results exceeding expectations, and its AI assistant, Meta AI, becoming the most widely used globally.
Investors anticipated that the momentum from January would persist since the tech behemoth appeared well-placed to leverage several industry trends.
Although President Trump temporarily halted the TikTok ban, the negative publicity surrounding the Chinese video-sharing app could potentially benefit Meta. Furthermore, if TikTok were sold to an American company, it might weaken its algorithm, potentially benefiting Meta-owned platforms like Facebook and Instagram.
Stocks broadly increased following the inauguration, and investors expected Meta to thrive in a more business-friendly atmosphere under the Trump administration, potentially including tax reductions.
In the final week of January, when AI stocks generally suffered due to the launch of DeepSeek, Meta stood out as one of the few successes in the sector. Investors appeared to validate Meta’s open-source strategy in light of DeepSeek’s model. Additionally, lacking a cloud infrastructure business, Meta is poised to benefit more directly from advancements in AI technology as it expands its social media ecosystem and builds its hardware division. The stock saw a 2% increase on January 27, even as competitors like Nvidia faced downturns.
To conclude the month, Meta reported stellar earnings, surpassing expectations on both revenue and earnings per share, which soared 50% to $8.02.
Looking Ahead for Meta
During the earnings call, CEO Mark Zuckerberg projected that Meta AI would be the first AI assistant to surpass 1 billion users by year-end. The company also saw promising developments in other areas, such as its Ray-Ban smart glasses, which sold over 1 million units in 2024.
Despite anticipating a slowdown in revenue growth, forecasting an increase of between 8% and 15% for the first quarter, the company is well-positioned for continued robust performance, maintaining its leadership in AI while its user and advertising base expands. After a strong performance in 2024 and last month, the stock still appears to be a worthwhile investment.
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook, and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Jeremy Bowman holds shares in Meta Platforms and Nvidia. The Motley Fool recommends and holds shares in Meta Platforms and Nvidia. The Motley Fool has a disclosure policy.
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Passionate about analyzing economic markets, Alice M. Carter joined THE NORTHERN FORUM with a mission: to make financial concepts accessible to everyone. With over 10 years of experience in economic journalism, she specializes in global economic trends and US financial policies. She firmly believes that a better understanding of the economy is the key to a more informed future.
