After weeks of anticipation, Meta (NASDAQ:META) stock has finally returned to the $1 trillion club. Indeed, Meta’s market capitalization exceeded $1 trillion today as its stock climbed more than 2.5%, bringing META stock to $395 per share, with $389.13 being the threshold for the $1 trillion valuation.
With today’s jump, Meta joins the likes of fellow tech giants Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Amazon (NASDAQ:AMZN) and Nvidia (NASDAQ:NVDA), each of which currently enjoys market caps greater than $1 trillion. Coincidentally, Microsoft crossed the $3 trillion milestone today, less than a month after overtaking Apple as the most valuable company in the world. However, Apple has since retaken the position, with a market cap of $3.02 trillion.
Interestingly, this isn’t Meta’s first time in the “four comma club.” Indeed, the company first reached the landmark valuation back in June 2021. However, it was short-lived. In 2022, the company suffered major losses as Facebook suffered its first-ever drop in daily active users.
2023 proved a landmark year for the company. Dubbed the “year of efficiency,” Chief Executive Mark Zuckerberg initiated several cost-cutting measures to improve the company’s bottom line.
META Stock Returns to $1 Trillion Valuation on AI Boom
Meta stock has enjoyed a strong start to the year so far after soaring in 2023. The stock surged nearly 180% in 2023, making it one of the best-performing stocks on the S&P 500, behind just Nvidia. So far, Meta has climbed more than 13.5% in just the first month of the year.
Reasonably so, Zuckerberg’s brainchild is positioned as a notable name in the growing artificial intelligence (AI) wave. Just last week, the CEO stated plans to purchase 350,000 H100 graphics cards from Nvidia by year-end as a means to boost its AI initiatives.
Meta is set to report its fourth-quarter earnings on Feb. 1, the results of which will likely prove the major test of whether traders will support or resist the company’s new valuation.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
