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Meta’s 20-Day Stock Rally – How Did We Get Here?

To put this in perspective, a 20-day winning streak is extremely rare for a company of Meta’s size. Since January 16, 2025, Meta’s stock price has been climbing consistently, defying broader market uncertainty.

While tech stocks have been volatile due to rising interest rates and geopolitical concerns, Meta has outperformed nearly every major tech company during this period.

Here are the four biggest reasons why Meta's stock is skyrocketing:

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1. Meta’s Massive AI Investment Is Paying Off

Meta isn’t just a social media company anymore—it’s an AI powerhouse. Over the past year, CEO Mark Zuckerberg has been making massive AI investments, signaling that the company is betting big on artificial intelligence.

Here’s what Meta is doing in AI that has investors excited:

✅ Spending $60B+ on AI infrastructure – Meta is investing between $60 billion and $65 billion in AI data centers and computing power to compete with Nvidia, OpenAI, and Google.
✅ Building the world’s most powerful AI data center – Meta announced plans for a two-gigawatt data center dedicated entirely to AI and machine learning.
✅ Launching advanced AI models – The company is rolling out cutting-edge AI tools that improve ad targeting, recommendation engines, and automation for its platforms.

Meta’s AI push isn’t just hype—it’s already delivering results. According to the latest earnings report, AI-driven ad recommendations have increased user engagement by 17% on Instagram and Facebook, leading to record-high ad revenues.

💡 Investor Takeaway: Investors are rewarding Meta for being ahead of the AI curve. If the company continues executing on its AI roadmap, this could be a long-term growth driver for the stock.

2. Meta’s Strategic Acquisition of AI Chip Startup FuriosaAI

One of the smartest moves Meta is making in AI is acquiring its own AI chip capabilities.

Earlier this month, Meta confirmed that it is in talks to acquire South Korean AI chip startup FuriosaAI. This move is part of Meta’s bigger strategy to build in-house AI chips, reducing reliance on Nvidia and AMD for high-performance computing power.

Here’s why this deal is a big deal:

📌 Lower AI Costs – By developing its own AI chips, Meta can cut costs significantly and optimize its infrastructure for large-scale AI models.
📌 Faster AI Model Training – More efficient chips mean faster training of AI algorithms, which improves Meta’s ad performance and AI-driven tools.
📌 Competitive Advantage – With Google (TPU chips) and Amazon (AWS Inferentia chips) already making in-house AI chips, Meta is catching up fast.

💡 Investor Takeaway: AI hardware dominance is just as important as software. If Meta successfully integrates its own AI chips, this could give them a massive cost advantage over competitors.

3. Meta’s Operational Efficiency – Layoffs and Leaner Growth

Meta has been cutting costs aggressively, and investors love it.

Earlier this year, Meta laid off 3,700 employees, accounting for 5% of its workforce. Unlike past layoffs, which were about restructuring, this round focused on performance-based terminations—meaning Meta is prioritizing efficiency and high-impact employees.

Why does this matter?

📉 Lower expenses – Meta is trimming unnecessary costs while still maintaining strong growth.
📈 Higher profit margins – Leaner operations mean better bottom-line performance, which is great for investors.
🛑 No unnecessary spending – Meta isn’t wasting cash on unnecessary projects. Every dollar spent is focused on high-return areas like AI and advertising.

💡 Investor Takeaway: A lean, efficient Meta is a more profitable Meta. Shareholders love companies that grow revenues while keeping costs under control.

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4. Meta’s New Cash Dividend – Rewarding Shareholders

For the first time ever, Meta declared a quarterly cash dividend of $0.525 per share.

This is a major milestone, because historically, high-growth tech stocks don’t pay dividends. However, with Meta’s strong cash flows and profitability, the company can now afford to reward shareholders with consistent payouts.

Why This Dividend Matters:

💰 Attracts Dividend Investors – Many investors look for stocks with consistent income. Meta is now more appealing to long-term investors.
📈 Shows Confidence in Cash Flow – Meta wouldn’t introduce a dividend unless they were sure they could afford it long term.
🚀 Strengthens Shareholder Loyalty – A dividend gives investors another reason to hold the stock instead of selling.

💡 Investor Takeaway: Meta’s dividend is a huge win for long-term investors. If the company continues growing, dividend increases could follow.

How Analysts Are Reacting to Meta’s Rally

Wall Street analysts are extremely bullish on Meta.

✅ UBS raised its price target from $736 to $786, maintaining a “Buy” rating.
✅ Morgan Stanley called Meta a “Top AI Play” for 2025.
✅ Goldman Sachs said Meta’s stock has “room to run,” citing strong ad revenue growth.

With a strong AI roadmap, strategic acquisitions, and increasing profitability, analysts believe Meta could continue its rally in the months ahead.

Should You Buy Meta Stock Now?

Meta has been on fire, and its 20-day winning streak proves that investors believe in the company’s long-term potential.

But is it still a good time to buy? Here’s a balanced perspective:

📈 Reasons to Buy Meta Now:

✅ Strong AI Growth – Meta is leading the AI revolution in social media, ads, and hardware.
✅ Increasing Profitability – Leaner operations = higher margins = better stock performance.
✅ Dividend Introduction – First-ever cash dividend shows financial confidence.
✅ Momentum is Strong – Stocks on winning streaks often continue running higher.

📉 Reasons to Be Cautious:

❌ Stock May Be Overheated – After 20 straight days of gains, a pullback is possible.
❌ Broader Market Risks – Inflation, interest rates, and macroeconomic factors could impact tech stocks.
❌ Competition in AI – Google, Microsoft, and Nvidia are also aggressively expanding AI capabilities.

Final Takeaways

Meta’s 20-day stock rally is no fluke—this is a company firing on all cylinders with AI, advertising, and efficiency improvements.

Here’s my advice:

🚀 If you’re a long-term investor – Meta is a strong company with major AI tailwinds. Even if there’s a short-term pullback, the long-term growth outlook remains strong.

📊 If you’re looking for short-term gains – The stock is due for some consolidation after such a big run. Consider waiting for a small dip before buying.

💰 If you’re a dividend investor – Meta’s new dividend policy makes it more attractive for long-term income seekers.

The bottom line? Meta is proving why it’s one of the best AI plays of the decade. If the company continues executing on its AI vision, this could be just the beginning of an even bigger rally. 🚀📈

[Live Life Grow Wealth]

DISCLAIMER

I make no representations, warranties, or guarantees, whether expressed or implied, that the content provided is accurate, complete, or up-to-date. Past performance is not indicative nor a guarantee of future returns.

I am an individual content creator and not regulated or licensed by the Monetary Authority of Singapore (MAS) as I do not provide investment services.

All forms of investments carry risks, including the risk of losing your entire invested amount. Such activities may not be suitable for everyone. You are strongly encouraged to seek advice from a professional financial advisor if you have any doubts or concerns.