Meta, Big Tech lead market rally

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Meta, Big Tech lead market rally

If market gains are kept, the company is expected to add nearly $60 billion to its market valuation. As much as 3.3%, the rally also lifted other tech companies from Snap Inc and Pinterest Inc to Amazon.com Inc.

If you want to be treated and valued like a growth stock, you need growth! And this is exactly what Meta delivered, returning to growth. Just as questions around a potential recession get louder, Bernstein analyst Mark Shmulik said in a note.

Shmulik, among 27 analysts who raised their price targets on Meta, said that the average price was $260, a rise of nearly 25 percent to a stock that has already risen more than 70% this year to lead gains among Big Tech companies.

The results also underscored the increasing importance of AI, with CEO Mark Zuckerberg saying the tech was helping to boost traffic on Facebook and Instagram and earn more in ad sales.

We believe AI has been instrumental 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.

It also said Zuckerberg, who has carried out several expensive overhauls to boost its core business, was no longer behind in building out its AI infrastructure.

The year of efficiency now paves the way to AI offense, Roth MKM's Rohit Kulkarni said.