Meta Stock Soars to New Heights: Best Day in 10 Years and Biggest Surge Since 2013

Background on Meta’s recent stock rally

Meta, formerly known as Facebook, experienced a massive rally on Thursday after delivering impressive results in its latest quarterly earnings. The meta stock surged 23%, its largest daily percentage gain since 2013, as Wall Street regains faith in the “House of Zuck.”

$90 billion increase in market capitalization

The $189 closing share price is an eight-month high and tacked on nearly $90 billion in market capitalization, more than the combined valuation of the three other largest American social media companies.

Mark Zuckerberg’s net worth increases by $12 billion

Mark Zuckerberg, CEO of Meta, saw his net worth increase by $12 billion, making him the 16th-richest person in the world.

Name change from Facebook to Meta in 2021

The company changed its name from Facebook to Meta in October 2021 to reflect its commitment to the metaverse, Zuckerberg’s vision for an online experience incorporating augmented and virtual reality.

Stock down 42% since announcement of name change

However, since the announcement, Meta stock is down 42%, as investors were wary of the company’s shift from its core digital advertising business and mounting expenses.

Analysts optimistic about Meta’s future

Despite the challenges, analysts are now optimistic about Meta’s future, with a focus on efficiency and profitability. The Meta stock is still about 50% below its 2021 peak, but analysts see a bull case building after the latest update.

$32.17 billion in revenue, beating topline estimates

Meta beat topline estimates with $32.17 billion in revenue, leading to several analyst upgrades.

$40 billion stock buyback, larger than anticipated

The company also pledged to become leaner and announced a $40 billion stock buyback, which was larger than anticipated.

Best-performing stock on S&P 500 Index in last three months

Source / (Bloomberg)

The meta stock’s latest rally helped the company add more than $250 billion in market value since its November low, cementing its place as the best-performing stock on the S&P 500 Index in the last three months.

Cultural change focused on efficiency leading to lower costs and faster revenue growth

Morgan Stanley analyst Brian Nowak noted that Meta’s cultural change focused on efficiency is leading to lower costs and faster revenue growth.

Best day for Meta Stock in nearly a decade

Overall, Meta’s impressive results and optimistic outlook have sparked a shift in sentiment among analysts and investors. Thursday’s gains were one of the stock’s best days in nearly a decade, with a new tone in analyst notes.

Shares at highest point since September 2022

Meta shares sit at their highest point since September 2022 and analysts see a bright future for the company. As Barclays Plc analyst Ross Sandler noted, “In future years we will probably look back at 2023 as the sentiment shift for Meta shares.”

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