Meta Platforms (META) had a good day on Monday. Shares jumped by 11.34% to close at $741.24. Trading volume also surged above the average, suggesting that the rally will hold up this time.
Markets abruptly changed their mind about the social networking platform’s monetization prospects. Traders are betting that the owner of Facebook, WhatsApp, and Instagram may monetize its AI. The bullishness started after Meta launched Muse, an AI assistant.
Muse is free, which should attract millions of app downloads. The next tier is $20/month (for 500M Muse tokens per week), while the highest tier is $100 a month (3B tokens per week).
Meta’s strong advance helped lift Nasdaq (QQQ) by almost 3%. The stock easily outperformed Pinterest (PINS), Reddit (RDDT), Netflix (NFLX), and Alphabet (GOOG). Conservative investors might pick GOOG stock over META. But YouTube is pushing the use of AI tools, which hurts viewership. Google Search added AI summaries at the top, which might weaken click-through rates for advertising links.
Rotation into Meta
After Meta’s surprising performance, investors might consider swapping Tesla (TSLA) or Nvidia (NVDA) stock for META stock. Investors wary about the AI bubble might consider Apple (AAPL). Apple launched iPhone Pro devices that include Apple Reference images. That helps users differentiate real photos from those edited or created with AI.
