Why Shares of Meta Platforms Fell for the First Time in 20 Days

Core Viewpoint - Meta Platforms experienced a decline in stock price after a significant increase, attributed to various factors including market reactions and company developments [1][2]. Group 1: Stock Performance - Since Donald Trump's election on November 5, Meta's stock has risen over 25%, nearing a market cap of approximately $1.8 trillion [2]. - The stock fell by 2.8% today, despite no clear reason for the decline [1]. Group 2: Financial Performance - Meta's fourth-quarter earnings exceeded consensus estimates, with the AI chatbot gaining 100 million monthly active users, totaling 700 million [3]. - CEO Mark Zuckerberg announced plans for a substantial investment of$ 60 billion to $65 billion in AI [3]. Group 3: Strategic Initiatives - Meta plans to construct an underwater cable over 50,000 kilometers long, named Project Waterworth, to enhance global digital infrastructure and AI capabilities, representing a multibillion-dollar investment [4]. Group 4: Market Sentiment - The largest pension fund in the Netherlands divested all shares in Meta and Alphabet, citing a misalignment with investment principles, though this was not linked to Trump's election [5]. - Despite concerns over high valuations in the AI sector, Meta is considered one of the more attractive options among the "Magnificent Seven" stocks based on forward earnings [6].