Meta Platforms Inc. continued its upward momentum on Friday, climbing 2.4% and closing at a record high. The boost came after a U.S. federal appeals court upheld a law requiring ByteDance, TikTok’s Chinese parent company, to divest its ownership or face a U.S. ban.
Meta’s stock has been on a remarkable run, gaining 77% in 2024 after an impressive near-tripling in 2023. This growth has pushed its market capitalization close to $1.6 trillion.
Amazon, another tech giant, also ended Friday at an all-time high, bringing its year-to-date gains to 49%. However, Apple saw a slight dip after hitting a high on Thursday. The strong performance of tech’s leading companies has propelled the Nasdaq Composite Index to a new record, with a 0.8% rise on Friday and a 32% increase in 2024.
Zuckerberg’s Recent Moves and TikTok Rivalry
Meta CEO Mark Zuckerberg was spotted dining with President-elect Donald Trump at Mar-a-Lago last week, where he showcased Meta’s Ray-Ban smart glasses. The meeting hinted at Zuckerberg’s willingness to collaborate with the incoming administration despite past tensions.
TikTok, one of Meta’s strongest competitors, has gained substantial traction, particularly among younger audiences, amassing around 170 million U.S. users. A law signed by President Joe Biden in April mandates ByteDance to sell TikTok or risk U.S. tech companies like Apple, Google, and hosting providers ceasing their support for the app.
On Friday, the U.S. Court of Appeals for the D.C. Circuit unanimously upheld the legislation, dismissing TikTok’s claims that it violates the Constitution and the First Amendment. TikTok announced plans to appeal the decision to the Supreme Court, emphasizing protecting Americans’ free speech rights.
Meta’s “Year of Efficiency” and AI Investments
Meta’s rally began in late 2022 and gained momentum after Zuckerberg dubbed 2023 the “year of efficiency.” The company undertook significant cost-cutting measures, including laying off around 21,000 employees, while enhancing its advertising platform with AI-driven advancements.
In its third-quarter earnings, Meta reported a 19% year-over-year increase in revenue but cautioned about rising infrastructure expenses in 2025. Its daily active user base reached 3.29 billion, marking a modest 5% annual growth.
Zuckerberg has also highlighted Meta’s increasing focus on artificial intelligence, which requires substantial investment in advanced GPUs and energy resources. The company has been expanding its data centers to support this technological shift.
On the Threads platform, Zuckerberg revealed that Meta AI has nearly 600 million monthly active users and teased the upcoming release of Llama 3.3, the latest version of its open-source large language model. However, details on how Meta calculates AI usage metrics remain undisclosed.