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Meta Platforms’ stock, the parent company of Facebook, closed at a record high on Friday, reaching $383.45, following a nearly 2% increase. This upward trend signals the continuation of a remarkable recovery from the challenges faced in 2022 when Meta’s stock plummeted by 64%, marking its lowest point since 2016.
In response to the downturn, CEO Mark Zuckerberg implemented significant cost-cutting initiatives in 2023, resulting in the elimination of over 20,000 jobs. He characterized 2023 as a “year of efficiency,” and the positive market response suggests investor approval of these measures.
The recent rally adds to Meta’s robust performance in 2022, where the stock witnessed an almost 200% surge. While the current stock price surpassed the previous high set in September 2021 at $382.18, Meta’s market capitalization remains below its record level due to substantial share buybacks. The company has been actively repurchasing tens of billions of dollars in stock, leading to a reduction in outstanding shares. In September 2021, Meta’s market cap was close to $1.1 trillion, and it currently stands below $1 trillion.
Investor optimism is growing regarding Meta’s position in the thriving artificial intelligence market. CEO Mark Zuckerberg recently highlighted the company’s commitment to AI by revealing plans to acquire 350,000 Nvidia H100 graphics cards and “almost 600k H100 equivalents of compute” by the end of the year. This substantial investment underscores Meta’s dedication to advancing its AI ambitions.
Meta Platforms is set to report its fourth-quarter earnings on February 1, providing further insights into the company’s financial performance and the impact of its strategic initiatives on overall business health. The positive market sentiment reflected in the stock’s record-setting performance suggests that investors are optimistic about Meta’s trajectory in 2023.