Shares of Meta Platforms (NASDAQ:META) surged by 3.5% in afternoon trading, buoyed by renewed enthusiasm surrounding Alphabet’s advancements in artificial intelligence, which sparked a wider market rally just ahead of the Thanksgiving holiday. The Nasdaq index climbed 2.6%, and the S&P 500 experienced a 1.6% gain, primarily driven by Alphabet’s impressive 5% rise following its announcement of the upgraded Gemini 3 AI model. This positive momentum built on the optimism from the prior trading session, after the New York Fed president hinted at the possibility of a December interest rate cut.
By the close of trading, Meta’s shares finished at $613.30, reflecting a 3.2% increase from the previous day. However, while the recent surge is significant, the market has indicated that Meta’s stock is relatively stable, with only seven moves exceeding 5% over the past year. This suggests that investors view the news as impactful, but not likely to alter the fundamental outlook for the company.
A recent downturn occurred about 25 days ago when Meta’s stock plummeted by 12.2% following disappointing third-quarter earnings, which were marred by a substantial one-time tax charge. Despite a robust year-over-year revenue growth of 26.2%, amounting to $51.24 billion and surpassing analyst expectations, the reported earnings per share of $1.05 fell short of estimates by 84.3%. This discrepancy was largely attributed to a non-cash income tax charge of $15.93 billion, masking a potentially stronger outcome of $7.25 per share if adjusted.
Additionally, guidance for future revenue was merely in line with expectations, raising concerns about sustained growth. Profitability metrics revealed some weaknesses, with both operating and EBITDA margins declining from the previous year due to rising costs. These combined factors contributed to investor disappointment, which had previously driven down the stock price.
At present, Meta’s stock has increased by 2.5% year-to-date, but at $614.06, it remains 22.3% below its 52-week high of $790 reached in August 2025. For those who invested $1,000 in Meta shares five years ago, their investment would now hold a value of approximately $2,217, illustrating the potential long-term value despite recent fluctuations.
This resurgence in Meta’s stock price reflects a broader excitement within the tech sector, linked closely to advancements in artificial intelligence. Thus, while the journey may have its ups and downs, there remains a positive outlook for both Meta and the tech industry as a whole as investors explore emerging growth opportunities.