Investors are favoring Meta Platforms stock today as the Facebook developer continues to favor an AI-heavy push. The stock is back near record territory after soaring about 45% from its April low, now sitting at $700. It is closing in on setting a new ATH again, and could reclaim $730 before June concludes.
Last week, Meta announced a new nuclear energy deal that may power its stock to the $800 level. The company also finalized a $14.3 billion investment in Scale AI, a move to pursue artificial general intelligence. Meta has even raised its capital spending forecast for 2025 to as much as $72 billion. While some investors would be concerned that the tech giant can’t keep up, most are excited due to the investments focusing on further development in artificial intelligence: a rewarding sector over the last two years.
“The amount of spending might give some pause, but we’re confident Meta can use AI to drive revenue and accelerate growth,” said Jake Seltz, who manages the Allspring LT Large Growth ETF. “This shows Meta is committed to making the investments it needs to maintain its leadership, and while the stock has had a nice run, we’re still bullish on the long-term opportunity.”
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The Mark Zuckerberg-led firm signed a new 20-year deal with Constellation Energy (CEG). The agreement will see the social media and tech giant begin purchasing from the plant in the next two years. Moreover, the deal will see META help to curtail the costs of running the plant. Altogether, it will save 1,100 local jobs and generate more than $13 million in tax revenue.
The move could also be monumental for META stock, as alternative energy may decrease the environmental concerns that come from AI. META shares are up more than 14% over the last 30 30days. Trading at $686, IT holds a median target of just $690. However, the stock has a bullish projection at the $918 level. That represents a 33% upside for the tech stock that has 89% of 70 surveyed analysts giving it a strong buy rating. Moreover, it is widely expected to outperform the market handily over the next 12 months.