Big tech has been very disappointing so far in 2025, Amazon, Google, and Microsoft missed Wall Street’s expectations on cloud revenue in their latest quarters. Additionally, Apple fell short on iPhone sales. Unsurprisingly, The companies’ stock prices are suffering. Google and Microsoft are down 1.9% and 3.1% year to date, and Apple's stock has declined over 2.3%.
One tech stock however has been very strong in the new year, Meta platforms just closed higher for the 20th straight day. Meta has witnessed a remarkable surge in its stock following the release of its third-quarter earnings report on Wednesday, October 23, which surpassed Wall Street’s expectations. On Thursday, Meta’s shares soared by 18%, and on Friday, they climbed an additional 4.5%, closing at $384.12. This marked Meta’s highest close since the early months of 2024. The company reported earnings per share (EPS) of $3.89, significantly exceeding the forecast of $3.55.
This boost in Meta’s stock price can be attributed to several analysts revising their estimates and price targets upward, this reflected renewed confidence in the tech giant’s growth. For example, Goldman Sachs analyst Ronald Hall increased his price target to $420 from $390, maintaining a ‘Buy’ rating. Morgan Stanley’s Kimberly Greene lifted her target to $405 from $380, also suggesting a ‘Buy’.
In an earnings call, CEO Mark Zuckerberg outlined strategic plans to accelerate investments in virtual reality and artificial intelligence. Per my last journal post, Zuckerberg emphasized his vision of investing “hundreds of billions of dollars” into AI infrastructure over the coming years, showing Meta’s long-term strategy to remain a industry leader in the tech space. In 2025, Meta has a planned AI capital expenditure of $65 billion.
Following Meta’s earnings announcement, the tech sector saw a positive ripple effect. On Friday, other major tech companies also saw gains: Apple was up 2%, Microsoft rose by 1.8%, and Alphabet saw an increase of 1.5%, demonstrating the broader market’s optimistic response to Meta’s strong performance.
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