Meta Platforms Inc. investors have already had a rewarding year. Now, their attention is on an event this week for insights into where the stock’s record-breaking rally is heading next.
Meta’s annual Connect conference kicks off on Sept 25, with industry buzz around the reveal of a prototype augmented reality eyewear product, plus the usual star turn by chief executive Mark Zuckerberg. Attendees will want to hear the CEO’s latest updates on artificial intelligence applications and investment.
Shares of the social media company have gained more than 13 per cent from a trough in early September, hitting an all-time high close last week. Only Nvidia Corp. has fared better among the Magnificent Seven cohort than Meta’s almost 60 per cent advance in 2024.
“Part of the reason why the stock has done as well as it has, is they’re one of the few that is tangibly benefiting from AI usage,” said Michael Sansoterra, chief investment officer at Silvant Capital Management.
The two-day conference should be a valuable opportunity to learn about Meta’s AI intentions, Sansoterra said, describing the Menlo Park, California-based company’s event as “a data point that, you know, gives you some color.”
What Meta showcases could be the next potential catalyst on deck for megacap technology stocks as investors assess the longevity of the AI trade. Some still doubt the payoff from heavy spending by companies on this industry craze and, while Meta has been able to show that big outlays on AI are yielding results, capital expenditure remains under scrutiny.
In recent years, the Connect event hasn’t immediately triggered large stock swings in itself, but has foreshadowed Meta earnings releases heading into the fourth quarter. Two years ago, the gathering showcased a new headset and updates on the Metaverse, just ahead of a damaging earnings release
