Why is Meta App winning over Wall Street while the rest of Big Tech struggles?

In their most recent quarters, Amazon, Google, and Microsoft failed to meet Wall Street's projections for cloud revenue. If we go according to the statistics Apple failed to meet iPhone sales targets. Meta Platforms is currently outperforming its Big Tech peers, such as Google and Microsoft. Tesla lagged both on the top and bottom lines. Meta is wooing Wall Street with a spectacular stock performance and investments. As of February 18, 2025, Meta's stock has been on a stunning winning streak. It has increased for 20 consecutive trading days and also hit an all-time high. This success is largely attributed to the company's strong financial results, particularly in the fourth quarter of 2024, where revenue grew significantly, exceeding Wall Street's expectations.

Meta CEO Mark Zuckerberg has committed as much as $65 billion for AI infrastructure by the year 2025. 

So it is to be believed Meta's aggressive expansion in AI is among the central drivers of the company's expansion. It would be expected this focus on AI would enhance the user experience across all of its platforms. That includes Facebook, Instagram, and WhatsApp. With more than 3.3 billion users per day, Meta has a huge chance to employ AI to target ads and increase revenue. The moment it targets ads it increases revenues. And the stock values of the corporations are being affected by it. While Tesla is down almost 12% so far this year, Google and Microsoft are down 1.9% and 3.1%, respectively. The shares of Apple has dropped more than 2.3%. Amazon is up 4.2% over the same time frame, but as of Friday, it had lost 3% since its February 7 results announcement. The stock of Meta has risen 25% since the year began and is currently enjoying a 20-session winning streak on Wall Street as of Friday.

For what reason is Meta doing so well when other hyperscalers are struggling?

• Google and Microsoft are facing several challenges. Investors now choose Meta because of its attention to detail. 

• Analysts have given Meta a "Strong Buy" rating. Its price targets indicate considerable growth opportunity. 

• All things considered, Meta is a market leader in the technology industry.

• Amazon disclosed that it will invest more than $100 billion in capital projects through 2025, compared to $75 billion and $80 billion for Google and Microsoft, respectively. 

• However, Meta will also invest a good amount of money in the technology, with estimates ranging from $60 billion to $65 billion for this year.

• Meta has become more popular in the market, and despite a general tech downturn, its stock is doing well.

•  Google and Microsoft, on the other hand, are still trying to demonstrate the return on their AI efforts and are having trouble turning their expenditures into revenue.

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