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What's Behind Meta's Record Rally? Should We Stay Invested?
METAMeta Platforms(META) ZACKS·2025-02-18 21:06

Group 1: Stock Performance - Meta stock has experienced a remarkable rally, achieving 20 consecutive days of gains in February, with only five losing sessions this year [2] - The stock has risen 25.8% year-to-date, reaching a record high of 736.67,whichisa600736.67, which is a 600% increase from its low in fall 2022 [3] Group 2: Investment in AI - Meta plans to invest between 60 billion and 65billioninAIinfrastructuretoenhanceitscompetitivepositionagainstrivalslikeMicrosoftandAlphabet[4]−ThecompanyisfocusingonAI−poweredhumanoidrobotsandanticipatesthatitsLlama4modelwillbewidelyadoptedthisyear[5]−Metaaimstoacquire1.3milliongraphicsprocessingunitsbytheendoftheyeartosupportitsAIdevelopment[6]Group3:UserBaseandGrowthPotential−Metahasover3.3billionloyalusersacrossitsplatforms,providingasignificantcompetitiveadvantageandastrongfoundationforfuturestockperformance[7]−Analystshaveraisedtheaverageshort−termpricetargetforMetastockto65 billion in AI infrastructure to enhance its competitive position against rivals like Microsoft and Alphabet [4] - The company is focusing on AI-powered humanoid robots and anticipates that its Llama 4 model will be widely adopted this year [5] - Meta aims to acquire 1.3 million graphics processing units by the end of the year to support its AI development [6] Group 3: User Base and Growth Potential - Meta has over 3.3 billion loyal users across its platforms, providing a significant competitive advantage and a strong foundation for future stock performance [7] - Analysts have raised the average short-term price target for Meta stock to 743.55, with the highest target set at $935, indicating a potential upside of 26.9% [8] Group 4: Dividend Information - Meta offers a dividend yield of 0.27%, with a payout ratio of 8% of earnings, reflecting its commitment to returning value to shareholders [9][10]