Meta's stock price, which serves Facebook and Instagram, hit an all-time high
Meta's stock price reached an all-time high, driven by expectations for its AI capabilities despite concerns about excessive investment in AI infrastructure. The company's shares closed at $539.91 on the 5th, marking a 5.87% increase from the previous day and surpassing its previous high of $527.34 on April 5.
Anticipation of Meta's AI Capabilities
The surge in Meta's stock price reflects Wall Street's confidence in the company's AI capabilities. Meta's Large Language Model (LLM) Lamar 3, which was introduced on April 18, is a widely used open-source AI model known for its outstanding performance. The company has also shared various AI development experiences through AI research institutions.
Expansion of AI Features
Meta recently unveiled its chatbot, MetaAI, and introduced several generative AI features for users of Instagram and WhatsApp. Analysts like Rob Sanderson of Loop Capital have highlighted Meta's potential to provide AI tools for content creators and businesses, creating additional value and monetization opportunities.
Concerns and Evaluations
However, concerns have arisen about Meta's substantial investment in AI infrastructure relative to its sales. Following the announcement in its first-quarter earnings release that AI investments could reach $40 billion, Meta's stock price experienced a more than 10% decline in a single day.
Analysts like Mark Schmullick from Bernstein have maintained a positive outlook on Meta's AI investments, emphasizing the company's potential. Meta is set to announce its second-quarter results on the 31st.
