Meta’s best month since 2013 has it on cusp of $2.5 trillion level
The stock is roughly 1 per cent gain away from joining an elite group of companies worth at least S$2.5 trillion.
Meta Platforms has experienced its best month since 2013, with its stock jumping 36% in September. The surge is largely attributed to the release of its Muse personal artificial intelligence (AI) assistant, which has quickly become a top app chart performer. This positive development has quieted concerns about heavy spending on AI and renewed investor confidence in Meta's AI strategy.
The stock is now just 1% away from joining an exclusive group of companies valued at $2 trillion or more. Rob Biederman, co-founder and managing partner at Asymmetric Capital Partners, believes that AI agents could become the primary gateway to the internet for many people, giving Meta a significant advantage. Since late August, when Meta agreed to pay up to $18 billion to settle a social-media lawsuit, the stock has rebounded from a year-long slump, now ranking as the third-best performer in the S&P 500.
Analysts are optimistic about Meta's potential, with JPMorgan raising its rating on the stock to overweight. However, the company still faces significant spending on AI, with capital expenditures projected to reach nearly $140 billion in 2026 and double in the following years. Despite this, Meta's stock offers a below-market multiple for above-market growth, making it an attractive investment.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
