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Meta Stock Closes at Record High as Last Year’s Rally Continues

by SuperiorInvest

Meta founder and CEO Mark Zuckerberg speaks during the Meta Connect event at Meta headquarters in Menlo Park, California, on September 27, 2023.

Josh Edelson | AFP | fake images

goal The stock price has fully recovered from its terrible year in 2022.

The stock rose nearly 2% on Friday to close at $383.45, setting a new record. The rally, which follows a nearly 200% jump last year, is an indication that investors remain satisfied with the lingering effects of CEO Mark Zuckerberg’s major cost-cutting initiatives in 2023 that resulted in the elimination of more than 20,000 jobs.

Zuckerberg billed 2023 as a “year of efficiency” after a disastrous 2022, when stocks plunged 64% to their lowest level since 2016.

Meta’s previous high was in September 2021 at $382.18, right at the peak of the tech bull market. However, Meta’s market capitalization is still below its record because the company has been buying back tens of billions of dollars in stock, reducing the number of shares outstanding. As of September 2021, its market capitalization was close to $1.1 trillion. Currently, it is under $1 trillion.

Investors are increasingly optimistic about the company’s position in the burgeoning artificial intelligence market.

Earlier this week, Zuckerberg indicated in an Instagram Reels post that Meta will have 350,000 NVIDIA H100 graphics cards due by the end of the year along with “nearly 600,000 H100 compute equivalents if other GPUs are included.” That suggests the company is spending billions of dollars to help support its AI ambitions.

Meta will report fourth-quarter earnings on February 1.

Look: The Dark Horse of AI: Why Apple Could Win the Next Evolution of the AI ​​Arms Race

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