Meta Launches Ads on Threads, Surpassing 400 Million Users
Meta Platforms Inc. shares rose by 5.01% as the stock crossed above its 5-day SMA, reflecting positive market sentiment. The company announced that it will begin showing ads on its Threads micro-blogging service, which has surpassed 400 million active users since its launch in July 2023. This significant step in its monetization strategy is expected to drive substantial revenue growth, showcasing Threads' strong competitive position in the market.
The rollout of ads on Threads is a gradual process, aimed at balancing user experience with advertising content. Meta's strategy includes introducing new features to enhance the platform's appeal and commercial potential. This move is likely to attract more advertisers and increase revenue, further solidifying Meta's position in the social media landscape.
Overall, this development indicates a positive trajectory for Meta as it continues to innovate and expand its advertising capabilities, which could lead to increased user engagement and revenue growth in the coming quarters.
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- Infrastructure Investment: Meta Platforms is planning a $10 billion data center in Indiana to support its expanding artificial intelligence infrastructure, expected to be operational in the coming years, thereby enhancing its competitive edge in the AI sector.
- AI Strategy Shift: The company is shifting its AI approach from open-source models to more closed systems, aimed at supporting future AI products and services, which could impact interactions among users, partners, and regulators.
- Stock Performance: Meta's stock is currently trading at approximately $639.77, with a 272.7% gain over the past three years and a 147.5% gain over five years, despite a 12.9% decline over the past year; this infrastructure investment may lay the groundwork for future growth.
- Increased Capital Needs: The Indiana data center and the shift towards closed-source AI underline the higher capital requirements associated with future AI products and services, prompting investors to monitor the returns on these investments and their impact on Meta's 26.8x P/E ratio.
- Nvidia Reduces ARM Stake: Nvidia gradually reduced its stake in ARM by the end of 2024, holding 1.1 million shares valued at $155.8 million; despite the sell-off, Nvidia's 20-year licensing agreement with ARM remains intact, indicating a long-term partnership.
- ARM Earnings Beat Expectations: ARM reported a 26% year-on-year increase in sales to $1.24 billion in its latest earnings report, surpassing analyst expectations and demonstrating strong momentum in AI projects, although its stock fell in after-hours trading, reflecting cautious market sentiment regarding future guidance.
- Positive Market Reaction: Following its Nasdaq debut, ARM's market cap is approximately $135 billion, and Nvidia's stake reduction did not dampen market confidence, as ARM shares rose 1.4% in premarket trading, indicating investor recognition of its long-term growth potential.
- Morgan Stanley Optimistic: Morgan Stanley has an “overweight” rating on ARM with a price target of $135, representing a premium of over 6% from Tuesday's closing price, reflecting a positive outlook on ARM's future performance, particularly in ongoing investments in AI.

- S&P 500 Performance: The S&P 500 has been struggling to surpass the 7000 point mark.
- Historical Threshold: This round-number challenge has persisted since the index first tested this level in late October.
- Stock Market Movement: Stock futures were rising on Wednesday as investors showed renewed interest in tech shares.
- Investor Behavior: The increase in stock futures was attributed to investors buying the dip following a recent selloff.
- Reduction Trend: According to the latest 13F filing, Tiger Global reduced its holdings in several major AI tech companies in Q4 2025, indicating a reassessment of the lofty valuations of AI-driven giants after years of rapid growth and heavy spending.
- Nvidia Holdings Change: As of December 31, 2025, Tiger Global's shares in Nvidia decreased to 11.01 million, down from 11.71 million on September 30, 2025, yet Nvidia remains one of its largest equity positions, reflecting a cautious approach towards near-term valuations.
- Mixed Market Signals: Despite strong AI spending and earnings growth, the market has shown mixed signals regarding the sustainability of AI-led gains, with some analysts warning of bubble risks in parts of the tech sector, particularly among the so-called

- Stock Performance: Applied Digital, Recursion Pharmaceuticals, and WeRide stocks experienced a decline early on Wednesday.
- Nvidia's Actions: Chip maker Nvidia has divested its stakes in all three companies mentioned.










