The stock rose about 2% to $383.45, surpassing an all-time high that has stood since September 2021.
The record is the latest milestone in a lengthy recovery for the stock. Shares nearly tripled in 2023, outperforming even in a positive year for megacaps as investors embraced the company’s focus on efficiency and cost cutting. It is up more than 300% off the low hit in 2022.
BloombergThe stock continues to look like a good investment, even after last year’s performance, according to Bernstein analyst Mark Shmulik.
“Management has done an exceptional job rebuilding the narrative around a company that is now the trifecta gold standard of a compounding grower + disciplined operator + AI winner,” he wrote in a note to clients.
Meta’s selloff, which exceeded 75% at maximum, is unmatched in the megacap era and featured a historic loss of market value. Concerns over the amount the company is spending on its metaverse initiative were a key factor driving the stock’s sharp losses.
Pulling back on that spending, coupled with a rebound in revenue growth, has led to Wall Street re-embracing the stock. In addition, even with the stock’s advance, it continues to look like a bargain relative to other names within big tech. The stock trades at around 21 times forward earnings, below its 10-year average, and under the 25 multiple of the Nasdaq 100 Index.