Wall Street is abuzz over Meta Platforms (NASDAQ:META) stock lately as the company flirts with being the next $1 trillion stock. Indeed, CEO Mark Zuckerberg’s brainchild has nearly regained a market capitalization of $1 trillion, which it reached for the first time in June 2021.
What’s up with Meta lately?
Well, the social-media-company-turned-tech-giant is running hot off the back of a fantastic year for the stock. Indeed, META stock climbed about 200% in 2023 and is now at a market cap of about $989 billion, just $11 billion shy from the heralded $1 trillion threshold.
Should it close the gap, Meta would join the likes of other well-known tech giants, including Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Amazon (NASDAQ:AMZN) and Nvidia (NASDAQ:NVDA). All of these companies are currently valued at more than $1 trillion. In fact, Microsoft leads the bunch, currently sitting at a $2.95 trillion market cap.
Will Meta’s ‘Year of Efficiency’ Push META Stock Past $1 trillion?
Meta is starting off the new year on a high note following its “year of efficiency” in 2023. Indeed, META is already up 11% in just the first few weeks of trading in 2024, even as the Nasdaq Composite and S&P 500 struggle to make real inlays.
Much has changed for the company since the last time it flirted with the “four comma club.” If you recall, 2022 was a a fairly miserable time for the company as it struggled with shrinking demand for its tech services as Covid-19 restrictions eased.
Infamously, Meta suffered the largest single-day selloff in corporate history in 2022 after the company reported fourth-quarter earnings that showed a pullback in Facebook’s daily active users for the first time ever. META fell over 26% in one day. Meta also laid off 11,000 employees in November of that year, setting up 2023 as its “year of efficiency.”
It seems the trials and tribulation haven’t been for nothing, however. In Q3 2023, Meta reported a strong earnings beat, “making it the second-best performing company” on the S&P behind Nvidia, per Business Insider.
At the time of this writing, Meta is trading for $385 per share, with a target of $389.13 per share to hit the $1 trillion valuation.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
