Technology
Wednesday, January 24th, 2024 8:41 pm EDT
Key Points
- Record Market Cap and Stock Performance: Meta’s market capitalization surpassed $1 trillion during intraday trading, with the stock experiencing a more than 2% increase and reaching around $396 per share. This achievement marks the second time Meta has reached a $1 trillion market cap, with the first instance occurring in 2021 when it approached $1.1 trillion in September. The company’s stock has been on a record rally, and its soaring performance comes on the heels of an almost 200% surge in the previous year.
- CEO’s Cost-Cutting Measures and Efficiency Focus: CEO Mark Zuckerberg instituted cost-cutting measures in response to a stock decline that led to Meta’s market cap hitting a six-year low in 2022. These measures included more than 20,000 job cuts. Zuckerberg has described 2023 as a “year of efficiency,” signaling the company’s strategic efforts to streamline operations and enhance financial performance.
- AI Investment and Shareholder Confidence: Shareholders are bullish on Meta’s future, particularly in the realm of artificial intelligence (AI). In a recent announcement, Zuckerberg revealed Meta’s plans to acquire 350,000 H100 graphics cards from Nvidia by the end of the year. Additionally, the company intends to obtain “almost 600k H100 equivalents of compute if you include other GPUs,” indicating a significant financial commitment to AI endeavors. The article highlights the confidence of shareholders in Meta’s efforts to strengthen its position as a major player in the field of artificial intelligence.
Meta’s market capitalization exceeded $1 trillion during intraday trading, experiencing a more than 2% increase, reaching around $396 per share in a record rally. This marks the second time Meta has achieved a $1 trillion market cap, with the first instance occurring in 2021 when it approached $1.1 trillion in September of that year.
The notable surge in Meta’s stock performance follows an impressive 200% gain in the previous year. CEO Mark Zuckerberg implemented cost-cutting measures in 2022, resulting in over 20,000 job cuts. Describing 2023 as a “year of efficiency,” Zuckerberg aimed to address the company’s stock decline, which had reached a six-year low in 2022.
Year to date, shares of Meta have risen almost 12%, indicating continued investor confidence. Shareholders are particularly optimistic about Meta’s efforts to solidify its position as a major player in artificial intelligence (AI). In a recent announcement, Zuckerberg revealed Meta’s plans to acquire 350,000 H100 graphics cards from Nvidia by the end of the year. Additionally, the company is set to procure “almost 600k H100 equivalents of compute if you include other GPUs,” signaling a significant financial commitment to its AI initiatives.
Meta’s fiscal fourth-quarter earnings are scheduled to be reported on February 1, providing further insights into the company’s financial performance and strategic direction.
In a related development, Microsoft also achieved a market cap milestone on the same day, briefly surpassing $3 trillion in value. This occurred nearly two weeks after Microsoft overtook Apple as the world’s most valuable public company. However, Apple has since reclaimed its position as the top company by market capitalization. These developments underscore the dynamic nature of the technology industry and the competition among major players for market leadership.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/01/24/meta-passes-1-trillion-in-market-cap.html
