Even the most bullish believers in a stock have to take a hard look at their investment when it rises to new heights. Now would be a good time to do so with Meta Platforms (META 0.43%), as the social media giant's share price climbed to heights not seen since the holiday season of 2021. This was on the back of a good Monday for the stock, as it closed a meaty 2.9% higher over its previous trading session.
The AI revolution comes to social media
While Meta as a company has had its fits and stumbles this year, it's nevertheless continued to be an investor favorite. Its core asset Facebook is the property most readily associated with social media, even after years of dominance and more than a little competition for the throne.
Compounding that, Meta has plunged deeply into artificial intelligence (AI), the technology that powers quite a few features on Facebook and other company sites. Investors remain hungry and unsatisfied with the still-limited numbers of AI-heavy stocks on the market, so they continue to jump into titles associated with the technology. Meta has the distinct advantage of being both a familiar property and an active AI developer.
It's too early to determine which AI-infused companies are going to lead the market and enrapture the business world with their technology. At this stage, many feel that it's wisest to place bets on established tech players figuring out clever ways to enhance their business with AI. Meta definitely qualifies, and the market continues to reward it for being in this position.
A fine combination of established and new
Meta is already operating from a position of strength. It remains a primary destination for the type of valuable, granular advertising unavailable in most other media, and it has a massive user base.
Neither of these great advantages should melt away soon to any degree; add business-enhancing tech like AI into the mix, and you've got a company that can keep winning for years to come. This means no one should worry about Meta's rising stock price.
