Meta Platforms Surpasses $1 Trillion Market Cap, Marking a Resilient Comeback

Record Rally Propels Meta’s Market Cap Beyond the Trillion-Dollar Threshold

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In a remarkable comeback, Meta Platforms Inc., formerly known as Facebook, has once again surpassed the $1 trillion market cap, closing up more than 1% at $390 per share in the midst of a record rally. This achievement comes after Meta’s market cap initially breached the trillion-dollar mark in 2021 when it was still operating under the Facebook brand.

During that previous milestone in September 2021, Meta’s market cap approached $1.1 trillion. The current surge in Meta’s stock performance is noteworthy, following a phenomenal 200% surge in the previous year. The surge came in conjunction with CEO Mark Zuckerberg implementing cost-cutting measures, leading to more than 20,000 job cuts. Zuckerberg, characterizing 2023 as a “year of efficiency,” undertook these measures after the company’s stock experienced a significant dip to a six-year low in 2022.

Meta’s shares reached a peak at around $396 per share during intraday trading on the day of the milestone. As of market close, the stock was up more than 10% year to date, reflecting shareholders’ bullish sentiment toward Meta, particularly as the company focuses on solidifying its position as a major player in artificial intelligence (AI).

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Mark Zuckerberg’s recent announcement added to the positive outlook, as he revealed Meta’s plans to acquire 350,000 H100 graphics cards from Nvidia by the year’s end, along with “almost 600k H100 equivalents of compute if you include other GPUs.” This move signals Meta’s substantial investment, amounting to billions of dollars, in advancing its AI initiatives.

The company is set to report fiscal fourth-quarter earnings on February 1, and the positive market sentiment indicates high expectations for Meta’s continued success. The achievement coincides with Microsoft also reaching a market cap milestone, briefly surpassing $3 trillion in value, nearly two weeks after overtaking Apple as the world’s most valuable public company. However, Apple has since reclaimed its position at the top.

Meta’s resurgence to a trillion-dollar market cap underlines its adaptability, strategic decision-making, and the renewed focus on cutting-edge technologies, positioning the company for further growth and innovation in the dynamic tech landscape.