Shares of Meta Platforms saw a 3.5% increase in afternoon trading, driven by renewed interest in Alphabet, which has sparked excitement in the artificial intelligence sector and triggered a market rally right before the Thanksgiving holiday.
The Nasdaq index climbed by 2.6%, while the S&P 500 rose by 1.6%. Alphabet led the way with a 5% gain after unveiling its enhanced Gemini 3 AI model. This positive sentiment seemed to ripple out across the tech industry. The rally was also fueled by the New York Fed president hinting at the possibility of a rate cut in December, building on momentum from the prior trading day.
Meta’s shares ended the day at $613.30, marking a 3.2% increase from the previous closing price.
So, should investors consider buying Meta stock now? Well, Meta’s stock hasn’t shown much volatility, recording only seven price changes over 5% in the past year. In this light, today’s increase may not drastically alter the market’s view of the company, yet it clearly reflects a significant response to the recent news.
The last notable shift in stock price occurred 25 days ago when it dropped 12.2% due to a Q3 earnings report that revealed a substantial one-time tax loss, overshadowing promising sales growth. There were also concerns about lower margins and a revenue outlook that met expectations.
Even though sales jumped 26.2% year-over-year to $51.24 billion—exceeding analyst predictions—the earnings per share were reported at $1.05, which was 84.3% below expectations. This steep decline was mainly due to a non-cash income tax charge of $15.93 billion. If that charge were excluded, the diluted EPS would have been $7.25, surpassing consensus estimates.
However, investors noticed other factors as well. The earnings outlook for the upcoming quarter aligns with Wall Street expectations, indicating that growth might plateau. Additionally, key profitability metrics diminished, showing declines in both operating margin and EBITDA margin compared to the previous year, which suggests rising costs. The combination of disappointing earnings and tepid guidance left investors wanting more, leading to a decline in stock prices.
Year-to-date, Meta has increased by 2.5%, but at $614.06 per share, it still falls 22.3% short of its 52-week peak of $790 reached in August 2025. An investor who purchased $1,000 worth of stock five years ago would now have shares worth about $2,217.
Companies like Microsoft, Alphabet, Coca-Cola, and Monster Beverage all started as modest growth stories amid larger trends. We’ve identified a lucrative AI semiconductor business that Wall Street still seems to overlook.
