Meta Platforms (META) Stock

Meta (META) shares rose on Tuesday following a record closing price the day before. Investors are showing increased interest in the stock after a strong quarterly earnings report and positive expectations for growth driven by AI.

Wall Street might have been surprised by DeepSeek's AI launch, but Meta's Chief Technology Officer, Andrew Bosworth, claims he saw it coming. He mentioned that it was "very predictable" and that he even sent an email about it six months ago.

Is Meta Platforms (META) a strong choice for momentum investors? Let's explore this question.

Investors frequently depend on the advice of Wall Street analysts to make choices about buying, selling, or holding stocks. News articles about these analysts from brokerage firms changing their ratings can significantly influence a stock's price.

A new quarterly earnings season has started in the U.S. business world. Over the next few weeks, many companies will share their latest financial results, but investors are especially interested in the major tech companies that are at the forefront of the artificial intelligence (AI) movement.

Experts told CNBC that DeepSeek's success is a win for open-source AI models like Meta's Llama. Seena Rejal, the chief commercial officer of AI startup NetMind, mentioned that DeepSeek demonstrates that open-source AI has evolved from being just a research project to a practical and scalable option compared to closed models like OpenAI's GPT.

Meta Platforms has experienced significant growth, with a 33% rise in stock value and solid financial results for both the quarter and the year, including a 50.5% year-over-year increase in earnings per share. However, I still recommend a "Hold" rating because the stock is valued quite high at 30 times earnings, which means it's not a great deal. While Meta's revenue is increasing due to higher ad prices and more impressions, it will need to find new sources of income, such as Threads and AI glasses, for future growth.

Shadi Nayyer has started a new position at Meta, where he will work on building relationships with creators and developers in the metaverse. His responsibilities for overseeing ecosystem growth are part of the Reality Labs content team.

Meta's CEO Mark Zuckerberg has promised to eventually make artificial general intelligence (AGI), which is AI that can perform any human task, accessible to everyone. However, a recent policy document from Meta indicates that there are specific situations where they might choose not to share a powerful AI system they have created.