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Meta Platforms (META) shares have recorded gains for 19 consecutive days, the longest winning streak of any current Nasdaq 100 (^NDX) company since 1990. Bloomberg Intelligence analyst Mandeep Singh joins Catalysts with Madison Mills to discuss Meta's record-setting run.
"So when you look at the time spent on the internet, Meta owns a good chunk of it," Singh says, highlighting Facebook, Instagram, and WhatsApp, which "all have north of 1 billion daily active users."
"What they have done very successfully in the case of Meta is apply AI across their apps. I mean, people talk about the ROI [return on investment] on GenAI [and] Meta is one of the prime examples of how effectively they have added new tools to create ads using generative AI to target ads using AI," the analyst says, adding, "That's why all the infrastructure that they have invested in the CapEx raise is really translating into higher ad pricing and better engagement on their platform."
Recent reports state Arm Holdings (ARM) is making its own semiconductor chips and has secured Meta as its first customer. As hyperscalers like Alphabet (GOOG, GOOGL), Amazon (AMZN), and Microsoft (MSFT) invest in developing their own chips, Singh says he's "not surprised [Meta] are taking steps to develop their own chip," especially given the impact of the trade restrictions on the chip sector and the industry's reliance on Nvidia (NVDA).
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This post was written by Naomi Buchanan.