TLDR:
- Meta’s 20-session winning streak at risk as stock falls 3.8% on Tuesday, though still up 22% year-to-date
- Company plans to increase AI data center spending to $65 billion in 2025, up from $40 billion in 2024
- Meta outperforms other tech giants like Google, Apple, and Microsoft, which are down over 2% this year
- 4 million advertisers now using Meta’s generative AI tools, quadrupling from 6 months ago
- Meta ranks 8th among best performing S&P 500 stocks in 2025, with 25.82% YTD performance
Meta’s (META) stock fell 3.8% on Tuesday, breaking a 20-session winning streak that began in mid-January. The decline brought the stock price to $708.03, marking a notable pause in what has been a strong start to 2025 for the social media giant.
Despite Tuesday’s decline, Meta’s overall performance remains robust, with the stock up 22% year to date and 17% over the past month. This growth stands in stark contrast to its Big Tech peers, with Alphabet, Apple, and Microsoft each down more than 2% since the start of the year.
The company’s recent streak continued through several major events, including President Trump’s inauguration, which CEO Mark Zuckerberg attended, and Meta’s earnings announcement on January 29.
AI Plans
Zuckerberg announced plans to increase capital expenditures on AI data centers to $65 billion in 2025, up from $40 billion in 2024. These plans include the construction of a massive data center in Richland Parish, Louisiana, which would cover an area comparable to a large portion of Manhattan.
The expansion of Meta’s AI capabilities has already shown measurable results in its advertising business. CFO Susan Li reported that 4 million advertisers are now using the company’s generative AI tools, a fourfold increase from just six months ago.
User engagement metrics also reflect positive trends attributed to AI implementation. According to Zuckerberg’s statements during the Q3 earnings call, AI-driven feed and video recommendations led to an 8% increase in time spent on Facebook and a 6% increase on Instagram this year.
Meta’s approach to AI development received validation from an unexpected source when AI startup DeepSeek unveiled its open-source AI model. This development appeared to support Zuckerberg’s decision to make Meta’s Llama models openly available.
Ad Revenue
The company’s advertising revenue within its Family of Apps segment grew 21% year-over-year to $46.8 billion in Q4 2024. This growth has been driven by two main AI initiatives: Meta AI, a personalized assistant with over 700 million monthly active users, and Andromeda, an AI-powered machine learning system that enhances ad targeting and performance.
Meta’s stock currently ranks as the eighth-best performing stock in the S&P 500 for 2025, with a year-to-date performance of 25.82% as of February 17.
Zeus Kerravala, founder and principal analyst at ZK Research, noted in a recent Yahoo Finance interview that Meta’s focused approach to AI investments sets it apart from competitors who are trying to be “all things to all people.”
Hardware
The company has also ventured into hardware innovations, with their Ray-Ban Meta AI glasses reportedly selling over one million units. Additionally, Meta is exploring AI-powered humanoid robots, developing teams to create underlying AI, sensors, and software for manufacturers.
Meta’s Q4 earnings per share grew by 60% year-over-year, reflecting the success of these initiatives. The company’s capital expenditures reached $37 billion in 2024, primarily directed toward AI infrastructure developments.
Meta’s investments in AI continue to focus on technologies that power its advertising business and maintain user engagement across its platforms, including Facebook, Instagram, Messenger, Threads, and WhatsApp.
