Microsoft's Stock Drop Weighs on S&P 500
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 30 2026
0mins
Should l Buy META?
Source: CNBC
- Microsoft's Performance Decline: Microsoft shares fell about 10% on Thursday, primarily due to high capital expenditures and underwhelming performance from its Azure cloud business, leading to concerns about future growth and dragging down the software sector, which fell approximately 7% that day.
- Apple's Earnings Reaction: Following its earnings report, Apple shares initially rose 4% but closed up only 1%, despite beating earnings and revenue estimates, indicating a cautious market sentiment towards tech stocks and investor concerns about future growth prospects.
- Strong Energy Stock Performance: ExxonMobil and Chevron both reached new highs, with respective gains of 20% and 10% over the past three months, driven by Brent crude futures rising above $70, fueled by market expectations of a potential U.S. military action against Iran.
- New CEOs in Retail Giants: Walmart and Target are set to welcome new CEOs, with Walmart shares up 5.4% in 2026 while Target is down 27% from its January 2025 peak, highlighting the mixed challenges and opportunities facing the retail sector.
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Analyst Views on META
Wall Street analysts forecast META stock price to rise
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 643.220
Low
655.15
Averages
824.71
High
1117
Current: 643.220
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- AI Patent Controversy: The company secured a patent allowing the simulation of social media activity for deceased users, which has sparked considerable backlash from consumers, potentially harming its brand reputation despite no immediate plans for implementation.
- User Experience Risks: The patent suggests that users could continue to post content posthumously, which may negatively impact other users, particularly on an emotional level, leading to a decline in trust towards the platform.
- Future Strategic Considerations: While Meta has no current plans to implement this technology, the existence of the patent indicates that the company may consider leveraging it for commercialization in the future, particularly in the realms of digital legacy and virtual memorialization.
See More
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- Learning Method Comparison: LeCun emphasized that humans and animals learn through observation and interaction, building 'mental models' to predict outcomes, whereas AI has yet to effectively navigate the complex and unpredictable real world, making robots and self-driving cars less capable than human learners.
- Education and Global Progress: LeCun believes AI should serve as a tool to amplify human intelligence and improve access to knowledge, akin to the impact of the printing press, particularly in countries with young, educated populations like India and parts of Africa, which could lead in AI innovation if they invest in talent and infrastructure.
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See More
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- Data Center CPU Procurement: This deal marks a significant advancement for Nvidia in the data center CPU market, as Meta, despite developing its own chips, has chosen Nvidia as the backbone of its AI infrastructure, indicating its pursuit of high-performance products.
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- AI Strategic Focus: Meta's ongoing investment in AI and reliance on Nvidia reflect its strategic intent to drive superintelligence globally, enhancing its competitive edge in social media and advertising clients.
See More
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- Partnership with Nvidia: Meta signed a new deal with Nvidia to purchase millions of chips, including GPUs and CPUs; while the deal's value remains undisclosed, analysts estimate it could be worth tens of billions, further solidifying Nvidia's leadership in the AI chip market.
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See More
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See More
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See More
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- User Engagement Milestone: Meta reported over 3.5 billion daily active users in Q4 across its platforms, including Facebook, Instagram, and WhatsApp, highlighting its significant influence and user retention in the social media landscape.
- AI Patent Controversy: The company secured a patent allowing the simulation of social media activity for deceased users, which has sparked considerable backlash from consumers, potentially harming its brand reputation despite no immediate plans for implementation.
- User Experience Risks: The patent suggests that users could continue to post content posthumously, which may negatively impact other users, particularly on an emotional level, leading to a decline in trust towards the platform.
- Future Strategic Considerations: While Meta has no current plans to implement this technology, the existence of the patent indicates that the company may consider leveraging it for commercialization in the future, particularly in the realms of digital legacy and virtual memorialization.
See More
AI Scientist: Artificial Intelligence Still Needs Improvement
- Limitations of AI: Former Meta scientist Yann LeCun stated that while large language models excel in information retrieval and symbolic reasoning, they still struggle with simple tasks like driving, indicating a significant gap in AI's understanding of the physical world.
- Learning Method Comparison: LeCun emphasized that humans and animals learn through observation and interaction, building 'mental models' to predict outcomes, whereas AI has yet to effectively navigate the complex and unpredictable real world, making robots and self-driving cars less capable than human learners.
- Education and Global Progress: LeCun believes AI should serve as a tool to amplify human intelligence and improve access to knowledge, akin to the impact of the printing press, particularly in countries with young, educated populations like India and parts of Africa, which could lead in AI innovation if they invest in talent and infrastructure.
- Future Outlook: As a leading figure in artificial intelligence, LeCun's insights highlight the potential of AI in education and global progress, suggesting that despite current technological limitations, the future development of AI remains promising.
See More
Meta Signs Multi-Billion Dollar Chip Deal with Nvidia, Strengthening AI Infrastructure
- Major Deal Signed: Meta has signed a new agreement with Nvidia to purchase millions of chips, including GPUs and CPUs, with the deal potentially worth tens of billions of dollars, highlighting Meta's strong reliance on Nvidia products and further solidifying Nvidia's leadership in the AI market.
- Data Center CPU Procurement: This deal marks a significant advancement for Nvidia in the data center CPU market, as Meta, despite developing its own chips, has chosen Nvidia as the backbone of its AI infrastructure, indicating its pursuit of high-performance products.
- Market Competition Landscape: Meta's move alleviates investor concerns about Nvidia losing market share, demonstrating that even amidst a diversified supply chain, Nvidia remains the preferred supplier in the AI space, boosting market optimism regarding Nvidia's upcoming chip launches.
- AI Strategic Focus: Meta's ongoing investment in AI and reliance on Nvidia reflect its strategic intent to drive superintelligence globally, enhancing its competitive edge in social media and advertising clients.
See More
Meta Signs Multi-Billion Dollar Chip Deal with Nvidia
- Massive Investment: Meta has invested billions in artificial intelligence, aiming to enhance its market competitiveness by building data centers and developing large language models, demonstrating its strategic commitment to AI technology and future growth.
- Partnership with Nvidia: Meta signed a new deal with Nvidia to purchase millions of chips, including GPUs and CPUs; while the deal's value remains undisclosed, analysts estimate it could be worth tens of billions, further solidifying Nvidia's leadership in the AI chip market.
- Market Reaction: This deal indicates that despite Meta's development of its own chips and potential sourcing from other suppliers, it has chosen Nvidia as the backbone of its AI infrastructure, boosting investor confidence in Nvidia's market share.
- Technological Edge: Nvidia maintains its market-leading position for GPUs due to its early focus on AI and ongoing technology updates, and this partnership with Meta will further expand its reach into the data center CPU market.
See More
Meta Reduces Employee Stock Awards by 5%
- Stock Award Cuts: Meta Platforms Inc. has reduced annual stock awards for most employees by approximately 5%, marking the second consecutive year of equity cuts as the company reallocates billions towards AI initiatives, highlighting its commitment to AI development.
- Infrastructure Investment Plans: CEO Mark Zuckerberg projects capital expenditures to reach a record-high range of $115 billion to $135 billion by 2026, primarily for constructing gigawatt-scale data centers, which are essential for the computational power required by next-generation AI.
- Internal Restructuring and Layoffs: Meta recently laid off 10% of its Reality Labs division, which has incurred over $70 billion in losses since 2021, indicating a strategic shift in resources from virtual reality to AI-powered wearables and personal superintelligence products.
- Weak Stock Performance: Year-to-date, META shares have declined by 0.87%, with a 14.20% drop over the last six months, reflecting a weak price trend in both the short and long term, despite maintaining a solid quality ranking.
See More
Meta's AI Chief Addresses Screen Addiction Concerns
- User Empowerment Vision: At the India AI Impact Summit, Meta's AI Chief Alexandr Wang emphasized that the company's long-term AI vision focuses on empowering users through personal superintelligence rather than trapping them online, aiming to enhance users' quality of life and health habits.
- Definition of Personal Superintelligence: Wang noted that the AI systems being developed by Meta will go beyond traditional chatbots, acting as extensions of users to help manage tasks, organize events, and improve wellness, thereby freeing up time for meaningful offline activities.
- Responsible AI Development: Addressing concerns about responsible AI development, Wang highlighted that Meta's business incentives align with user trust, stating that if the company fails to build safe, transparent, and useful AI systems, users will stop using its products, reflecting the company's commitment to user experience.
- Market Performance Analysis: Despite ranking high for quality in Benzinga's stock rankings, Meta's stock shows a negative trend across short, medium, and long-term periods, indicating market caution regarding its future developments.
See More
