Meta Platforms experienced a remarkable surge, with its stock soaring over 14% to a record high of $451 after reporting impressive quarterly results.
The Facebook owner added $148 billion to its market capitalization, reaching $1.16 trillion, driven by robust advertising and device sales.
The company declared its first-ever dividend, contributing to the positive investor sentiment.
Amazon’s 8% Jump and $1.78 Trillion Market Cap:
Amazon.com joined the rally, with its stock jumping 8% after surpassing revenue expectations for the December quarter.
Strong growth in online spending during the crucial holiday shopping season fueled the e-commerce and cloud-computing giant’s surge, pushing its market capitalization to $1.78 trillion.
Apple’s $70 Billion Decline Despite Quarterly Beat:
Apple, in contrast, experienced a decline of $70 billion in market value after reporting quarterly results that beat analysts’ expectations.
While the company’s overall performance was strong, concerns arose due to sales in China missing estimates. Apple’s stock dipped 3.3%, highlighting its challenges in a competitive Chinese market.
Generative AI and Market Dynamics:
Investor optimism surrounding generative AI has been a driving force behind the rallies in the stock market’s most valuable tech companies.
Microsoft recently surpassed Apple as the world’s most valuable company, leading analysts to anticipate Microsoft’s lead expanding over the next five years due to its early advantage in AI.
Apple’s Response to AI Competition:
Apple CEO Tim Cook acknowledged the importance of generative AI on an investor call, expressing excitement about upcoming developments to be revealed later in the year.
Analysts suggest that for Apple to accelerate growth, it may need contributions from new products like the Vision Pro mixed-reality headset or a generative AI-driven cycle, potentially linked to the iPhone 16.
Meta’s 2024 Capital Expenditure Increase:
In its post-earnings report, Meta announced an increase in its 2024 capital expenditures, ranging from $30 billion to $37 billion.
The $2 billion hike is attributed to investments in servers, some of which will support AI initiatives.
Meta’s extended-trade surge in market capitalization surpassed the value of its smaller social media rival, Snap Inc.