Meta stock price (NASDAQ: META) reached a new all-time high on Monday, closing at $738.09 as investors responded positively to the company’s aggressive artificial intelligence (AI) expansion strategy. The social media giant’s shares surged following announcements of major AI investments and high-profile talent acquisitions from competitors like OpenAI.

Meta’s stock performance reflects growing market confidence in the company’s strategic pivot toward AI leadership, despite facing significant regulatory challenges across multiple jurisdictions.

The stock has demonstrated bullish sentiment, rising 42.72% over the past year and establishing new price records as the company commits billions to AI infrastructure and talent acquisition.

Why Is Meta Stock Going Up Today? Current Meta Stock Price Analysis

Meta stock price closed at $738.09 on Monday, representing a 0.6% daily gain and marking a new closing record. The intraday trading session saw Meta shares reach an all-time high of $747.90, surpassing the previous record of $736.67 set in February 2025. This latest milestone comes as the stock has gained 15.31% over the past month and 8.36% compared to the previous week.

The current Meta share price reflects strong institutional confidence in the company’s AI strategy. Trading volume reached 15.4 million shares, slightly below the three-month average of 16.13 million. The stock’s market capitalization now stands at $1.86 trillion, positioning Meta among the most valuable technology companies globally.

Technical indicators present a mixed but generally positive outlook for Meta stock. The Relative Strength Index (RSI) sits at 62.37, indicating neutral momentum, while the stock trades above key moving averages including the 50-day ($577.02) and 200-day ($588.03) simple moving averages. These technical factors suggest continued upward momentum despite some overbought conditions in shorter timeframes.

AI Investment Strategy Drives Market Confidence

Meta’s substantial commitment to artificial intelligence development has become the primary catalyst for recent stock price appreciation. The company announced a $14.3 billion investment in Scale AI, representing approximately 10% of Meta’s projected 2024 revenue and marking the firm’s largest external investment since the WhatsApp acquisition. This move grants Meta a 49% stake in the data labeling startup while bringing Scale AI CEO Alexandr Wang into Meta’s leadership structure.

AI Investment Strategy Milestones:

$14.3 billion investment in Scale AI represents largest external acquisition since WhatsApp 49% stake acquired in data labeling startup Scale AI $100 million signing bonuses offered to top AI talent from competitors 11 new hires join Meta Superintelligence Labs leadership team $64-72 billion capital expenditure guidance for 2025 infrastructure development

The establishment of Meta Superintelligence Labs represents a fundamental shift in the company’s organizational structure. Wang and former GitHub CEO Nat Friedman will co-lead this new division, which consolidates Meta’s foundational AI model development, including the open-source Llama software and Fundamental Artificial Intelligence Research (FAIR) projects. This centralization aims to accelerate AI development and improve coordination across Meta’s various AI initiatives.

Regulatory Challenges and Market Impact

Despite positive stock performance, Meta faces substantial regulatory headwinds that could impact future share price movements. The European Union imposed a €200 million fine in April 2025 for Digital Markets Act violations related to Meta’s advertising consent model. More significantly, the company faces potential daily fines of up to 5% of global revenue if it fails to comply with EU regulations by June 2025.

The Federal Trade Commission’s antitrust trial, initiated in April 2025, presents perhaps the most serious threat to Meta’s current business structure. The case centers on Meta’s historical acquisitions of Instagram and WhatsApp, with potential forced divestitures that could reduce annual revenue by $30-40 billion. These regulatory risks create uncertainty that may limit Meta stock price appreciation despite strong AI investment momentum.

Analysts estimate that regulatory fines and compliance costs could reduce Meta’s 2025 net income by 5-10%, creating additional pressure on financial performance. However, the company’s strong cash position and revenue diversification provide some protection against these regulatory challenges.

Financial Performance and Analyst Outlook

Meta’s recent financial results demonstrate the company’s ability to generate substantial cash flows to fund AI investments. The company reported earnings of $6.43 per share in the most recent quarter, significantly exceeding analyst estimates of $5.23 per share, representing a 22.83% positive surprise. Revenue reached $42.31 billion, surpassing the estimated $41.34 billion.

Analyst consensus remains strongly positive for Meta stock, with 46 analysts maintaining a “Strong Buy” rating and an average price target of $704.29. However, this target represents a 4.58% decrease from current levels, suggesting some analysts view the stock as potentially overvalued at current prices. Price targets range from a low of $50 to a high of $935, reflecting significant disagreement about Meta’s long-term prospects.

Consensus Recommendations:

Strong Buy: 46 analysts Average Price Target: $704.29 Price Target Range: $50 – $935 Upside/Downside: -4.58% from current levels Rating Distribution: Overwhelmingly bullish sentiment

The company’s capital expenditure guidance increase to $64-72 billion for 2025, up from the previous $60-65 billion range, demonstrates Meta’s commitment to AI infrastructure development. This substantial investment in data centers and computing capacity supports the company’s goal of bringing 1 gigawatt of computing capacity online in 2025.

Meta Shares Technical Analysis

Based on my technical analysis, Meta stock is currently expected to find support at its previous all-time high, which was set in February and has recently been surpassed. A drop back below this level would signal a more pronounced correction, with a potential downside target around $625.60, where the lows from the second half of May are located.

Meta stock chart analysis reveals strong upward momentum despite some technical concerns. The stock trades at a 0.5% discount to short-term forecasts but remains 46.4% above longer-term projections. The Fear & Greed Index indicates “Fear” at 39, suggesting some market caution despite recent price gains.

Moving average analysis shows the Meta stock price trading above most key technical levels. The stock maintains positions above the 20-day ($595.68), 50-day ($577.02), and 200-day ($588.03) simple moving averages, indicating sustained bullish momentum. However, the 5-day moving average at $644.22 suggests some short-term selling pressure.met

The stock’s beta coefficient of 1.41 indicates higher volatility than the broader market, with current volatility measured at 4.69%. This elevated volatility reflects both the stock’s growth potential and the uncertainty surrounding regulatory challenges and competitive pressures in the AI sector.

Market Outlook and Meta Stock Price Predictions

Short-term Meta stock price prediction models suggest continued upward momentum, with forecasts indicating potential gains to $747.82 by July 29, 2025, representing a 1.32% increase. Longer-term projections show more substantial appreciation potential, with some analysts targeting prices above $800 within the next 12 months.

The company’s AI investments and talent acquisitions position Meta for potential market share gains in the rapidly expanding artificial intelligence sector. However, regulatory challenges and increased competition from established players like Google and Microsoft create significant uncertainty about future performance.

Revenue diversification efforts, including potential WhatsApp advertising monetization and expanded AI services, could provide additional growth drivers beyond traditional social media advertising. These initiatives may help justify current valuation levels and support continued stock price appreciation.

Meta’s stock performance will likely depend on successful execution of its AI strategy while navigating complex regulatory environments. The company’s substantial financial resources and technical capabilities provide advantages in the competitive AI landscape, but regulatory outcomes remain a significant risk factor for investors.

Meta Stock News FAQ

Why Is Meta Stock Rising?

Meta stock is rising due to several key catalysts driving investor confidence. The primary factor is the company’s aggressive AI expansion strategy, including the $14.3 billion investment in Scale AI and the formation of Meta Superintelligence Labs. The hiring of top AI talent from competitors like OpenAI, with signing bonuses reaching $100 million, demonstrates Meta’s commitment to AI leadership. Additionally, strong quarterly earnings that beat analyst expectations by 22.83% and the company’s substantial capital expenditure increase to $64-72 billion for AI infrastructure development have reinforced market optimism about Meta’s long-term growth prospects.

Is Meta Stock a Good Buy Right Now?

Meta stock presents a mixed investment opportunity at current levels. The positive factors include strong analyst consensus with 46 out of 61 analysts maintaining “Strong Buy” ratings and the company’s dominant position in digital advertising with expanding AI capabilities. However, the stock trades at a slight premium to analyst price targets, with the consensus target of $704.29 representing a 4.58% decrease from current levels. Regulatory risks, including ongoing EU fines and FTC antitrust proceedings, create significant uncertainty. Investors should consider their risk tolerance, as Meta’s beta of 1.41 indicates higher volatility than the broader market.

Can Meta Reach $1000?

Based on analyst forecasts, Meta has the potential to reach $1000 within the next 2-3 years. Long-term projections show the stock could trade between $681-$935 in 2026, with some forecasts targeting $1,208 by 2027. The path to $1000 depends on successful execution of Meta’s AI strategy, continued advertising revenue growth, and effective monetization of new platforms like Threads and WhatsApp Business.

Is Meta Overvalued?

Meta’s valuation presents a nuanced picture with arguments on both sides. The stock trades at approximately 31.3x forward P/E ratio based on 2025 earnings estimates, which is reasonable for a technology company with strong growth prospects. The company’s dominant market position in social media advertising and substantial cash generation capabilities support current valuations.

This article was written by Damian Chmiel at www.financemagnates.com.TrendingRead More

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