Meta's stock heads for best week since early 2024 as optimism builds around AI strategy
CNBC · 2026-07-10
Meta Platforms' stock is experiencing its best week since early 2024, with shares surging 6% on Friday and approximately 15% for the week. This positive movement is attributed to increasing optimism surrounding the company's artificial intelligence strategy, notably following the release of its new agentic model, Muse Spark 1.1, and Muse Image. This rally has erased the stock's year-to-date losses, pushing it up over 2%, though it still lags behind the Nasdaq's 13% gain. Analysts like Justin Post from Bank of America suggest Meta has achieved significant cost savings in its AI infrastructure. Nick Jomes, a senior analyst at BNP Paribas, anticipates Meta may further increase its 2026 capital expenditure guidance, potentially ranging from $135 billion to $155 billion, when it reports its second-quarter earnings. Jomes believes Meta is well-positioned to fund this spending through AI monetization, advertising gains, subscription revenue, and potential cloud offerings and AI model licensing.
*The full article also explores insights into Meta's revenue diversification strategies beyond core advertising.*