Meta Platforms Inc. witnessed a rise in its shares by 11 percent on Thursday amid an earnings report showing progress towards the “year of efficiency,” the report also showed a return to growth due to the AI-powered content recommendations.
The company is set to add nearly $60 billion to its market valuation, if premarket gains hold. The rally also lifted other tech companies from Snap Inc. and Pinterest Inc. to Amazon.com Inc. by as much as 3.3 percent.
“If you want to be treated and valued like a growth stock, you need growth! And this is precisely what Meta delivered returning to growth… just as questions around a potential recession get louder,” said Bernstein analyst Mark Shmulik.
“We believe AI has played a crucial role in shifting Meta from showing a more limited set of friends, family, and followed content to an almost unlimited set of recommended content now available in Reels and Feed,” J.P. Morgan analysts said.
Mark Zuckerbeg said that the company is no longer behind on its plan to build its AI infrastructure.
