In This Article:
Meta Platforms (META) is in the red year to date after Tuesday's losses, making it the final "Magnificent Seven" name to lose its year-to-date gains since the start of 2025.
Madison Mills and Brad Smith explore the stock details on Morning Brief.
To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.
We gotta talk about Meta Platforms. Right now, it's higher pre-market, four tenths of a percent, after falling into negative territory for the year, year to date here. It's the last magnificent seven stock to give up year-to-date gains. And this comes after the tech giant saw a record winning streak, gaining for 20 straight sessions. Meanwhile, Cathy Woods, Ark Investment Management cut its stake in Meta for the first time in a year. And as we were looking at and really evaluating over recent weeks the relative performance of Meta versus the other Mag 7s, which you'll remember for NVIDIA, for Apple even, they were leading some of those declines earlier on in the year and catching a lot of investor attention there. Plus, of course, it was only seemingly a matter of time before Tesla and some of the intertwinings that Elon Musk, CEO, has into the administration start to catch up with it. So all those things considered for what we've been watching with Meta, what they've been touting in recent weeks is this being, in 2025 being the year, a pivotal year for the Metaverse, as Mark Zuckerberg has called it. The jury's still out on that one. We have to see what kind of devices and whether or not there is this swift move from people into the metaverse and what type of monetization takes place. But we're still a long ways off from that being fully monetized. In the meantime though, they are doing a good job on retaining some of the advertisers as they move towards more of those AI features within Instagram, within Facebook native, and WhatsApp's growing at a rapid clip too.
Yeah, I mean, I think the only thing I would mention super quickly, if we can pull that chart back up again, is the fact that Meta is the outperformer of the Mag 7 and Tesla is the biggest laggard. I think this actually paints a picture of the fact that the moves we're seeing in the Mag 7 don't have much to do with fundamental company changes, Tesla withstanding. You're just seeing pressure and potentially an unwind of this trade. There's nothing that has changed at Meta over the past quarter that is indicative of a huge slowdown to come for the company. Perhaps this is about those tech valuations getting a little bit out of hand and therefore you're seeing a little bit of that selling coming in.