Meta Stock Ahead Fifth Straight Day Amid AI Job Cuts Report, $27 Billion Data Center Deal

Core Insights - Meta Platforms is experiencing a positive stock performance, with shares increasing for five consecutive days ahead of its third-quarter earnings report [1][9] - The company is undergoing a transformation to become a leader in artificial intelligence, which includes recent layoffs in its AI division and a significant investment in a new data center [2][3][5] Group 1: Stock Performance - Meta stock is currently up 1% at $741.08, marking a recovery from a previous decline where shares fell 12% from a high of $790.90 on September 19 to a low of $690.51 on October 6 [6][7] - The recent gains have helped Meta break a negative trend line, forming a double-bottom base with a buy point at $790.80 [8] Group 2: AI Division Developments - Meta has cut approximately 600 positions from its AI division to create a more agile operation, despite having thousands of roles in that unit [2][3] - The company is still hiring for other parts of its AI labs, indicating ongoing investment in AI capabilities [3] Group 3: Data Center Investment - Meta announced a joint-venture deal to finance a $27 billion data center in Louisiana, with Blue Owl Capital managing the funds and holding an 80% stake [4][5] - The Hyperion data center is expected to significantly enhance Meta's computing power for AI research and development, aligning with Zuckerberg's broader investment strategy in data centers and AI [5] Group 4: Market Sentiment and Analyst Outlook - Analysts have expressed positive sentiment regarding Meta's advertising business ahead of the earnings report, with expectations of a strong performance [9] - Morgan Stanley's analyst noted that despite concerns about competition from OpenAI and its Sora app, there is an opportunity for investors as Meta's earnings report approaches [9]