Meta Platforms posts best weekly gain in more than two years as AI strategy pays off

[Financial News]  

Meta Platforms shares jumped 6% from the previous session on the 10th local time to $669.21.
According to CNBC, the stock rose 15% for the week, marking its best weekly performance since early 2024 and the strongest in more than two years. That also pushed Meta back into positive territory for the year, with the stock up 1.38% so far this year.
The move suggests that Meta's shift in AI strategy is gaining traction in the market, even as AI stocks struggle amid concerns over massive investment spending.
Mark Zuckerberg's AI strategy is winning investor confidence.
In April, Meta unveiled its new AI model, Muse Spark, to catch up with Anthropic, Google and OpenAI. This week, it made two major announcements.
On the 7th, it introduced Muse Image, a new AI model for image generation. On the 9th, it unveiled Muse Spark 1.1 for AI agents and coding.
Muse Image and Muse Spark 1.1 show that Meta has adopted an aggressive strategy to stand alongside leading players in the field, including OpenAI, Anthropic and Google. They also indicate that the company is seeking revenue streams beyond advertising. In addition, they suggest that the Meta Superintelligence Lab, launched last year, is delivering results.
Meta is also developing its own AI chips. The Iris project, unveiled in March as part of its data center expansion plan, is expected to make its debut in September. Meta has also set a goal of securing 14 gigawatts of computing capacity next year using the project.
In April, Meta said in its first-quarter earnings report that it would raise its full-year capital expenditure plan to as much as $145 billion, sending the stock down 7%. But now, expectations are outweighing concerns.
Investor sentiment has recently improved as Meta moves to create new revenue streams, including by offering excess capacity at its data centers to third parties and signaling an entry into the cloud market.
Meanwhile, Bank of America analyst Justin Post praised Meta, saying, "Meta achieved significant cost savings by reaching capital expenditure per megawatt that was far below BofA and Wall Street expectations."

dympna@fnnews.com Song Kyung-jae Reporter