Meta Stock: Solid Gains in 2024 – Why Investors Are Cheering
- Why Is Meta’s Stock Rallying in 2024?
- How Is AI Replacing the Metaverse in Meta’s Strategy?
- What’s the Real Impact of Delaying "Phoenix" AR Glasses?
- Are There Risks Behind Meta’s AI Ambitions?
- What Should Investors Watch in Meta’s Next Earnings?
Meta Platforms (formerly Facebook) is making waves with its strategic pivot from the metaverse to AI and cost discipline. The latest acquisition of an AI startup and delayed hardware plans signal a shift that’s winning Wall Street’s approval. With shares up 1.79% and analysts bullish, we break down what’s driving the rally—and the risks ahead. Spoiler: It’s not just about Zuckerberg’s "year of efficiency" anymore.
Why Is Meta’s Stock Rallying in 2024?
Meta’s stock (NASDAQ: META) closed at €578.50 ($620) last Friday, up 1.79%, as investors applaud two bold moves: 1) Acquiring Limitless, a conversational AI wearables startup, and 2) Delaying its "Phoenix" AR glasses from 2026 to prioritize profitability. Mizuho and Wedbush analysts now project a $920 price target, citing Meta’s "rare combo of ad revenue growth and reduced cash burn." TradingView charts show the stock has held above its 50-day moving average since November—a bullish signal.
How Is AI Replacing the Metaverse in Meta’s Strategy?
Gone are the days of unlimited Reality Labs funding. Insider reports confirm Meta slashed its 2026 VR budget by ~30%, redirecting funds to AI products like Limitless’s voice-to-data tech. "This isn’t just cost-cutting—it’s Zuckerberg admitting AI monetization beats VR pipe dreams," remarked BTCC’s lead tech analyst. The pivot mirrors Microsoft’s Copilot playbook: Meta plans to integrate AI across WhatsApp, Instagram, and its upcoming Ray-Ban smart glasses (now rumored to launch with ChatGPT-style features).
What’s the Real Impact of Delaying "Phoenix" AR Glasses?
Pushing Phoenix’s launch to late 2027 saves Meta ~$2B annually (per Bloomberg), but the bigger win is avoiding another "Quest Pro flop." Remember 2023’s $1,500 VR headset that gathered dust on shelves? This time, Meta’s playing it safe—using the delay to refine hardware and wait for Apple’s Vision Pro to test market appetite. Smart move: Reality Labs lost $13.7B in 2023 alone. Now, those savings boost stock buybacks.
Are There Risks Behind Meta’s AI Ambitions?
Absolutely. The EU just opened an antitrust probe into WhatsApp’s alleged AI data discrimination (translation: Europe hates Big Tech’s walled gardens). Meanwhile, Meta’s AI push faces ChatGPT-level scrutiny over privacy. My take? Zuckerberg’s betting regulators MOVE slower than AI adoption. If WhatsApp monetizes AI tools like OpenAI’s GPT Store, Meta could unlock a $10B+ revenue stream—but only if the lawsuits don’t pile up first.
What Should Investors Watch in Meta’s Next Earnings?
Mark your calendar for January’s earnings call. Key metrics: 1) CapEx guidance (anything under $30B signals sustained cost discipline), 2) Limitless integration timeline, and 3) Reality Labs’ loss margins. BTCC’s data team notes Meta’s R&D spend is still 22% of revenue—high for a "mature" tech giant. If AI can’t offset VR losses by 2025, even $920 price targets might be fantasy.
