Meta Reaches New Stock Heights as AI Vision Captivates Wall Street

Meta's AI Breakthroughs Drive Stock Surge Amid Wall Street's Optimism

Editorial Team (ET)July 15, 2025

Meta Platforms Inc. (META) hit an all-time intraday high on Thursday, fueled by its growing momentum in artificial intelligence (AI) and the excitement generated at its recent developer event, Meta Connect 2024. Meta’s shares reached a peak of $577 after the event before settling at $573 by mid-morning—a near 1% gain that underscores Wall Street’s bullish stance on Meta’s AI future.

Llama 3.2: Meta’s Bold AI Push

One of the primary drivers behind Meta’s stock surge is its latest AI model, Llama 3.2. This model represents a significant leap in Meta’s efforts to catch up with other Big Tech AI players like Microsoft (MSFT), Google (GOOG, GOOGL), and OpenAI. Llama 3.2 builds on the success of Meta’s previous models, including Llama 3.1, which made headlines earlier this year for outperforming some of OpenAI’s technology in certain areas.

Llama 3.2’s capabilities are impressive: it’s an open-source model that can process images, charts, graphs, and text, allowing developers to create more advanced and dynamic applications. This positions Meta as a serious competitor to OpenAI, whose models like GPT-4 have dominated the conversation around AI innovation.

Meta’s open-source approach is a game-changer in the AI world, providing developers access to a tool that can drive more complex and varied use cases. With the power to handle multimodal tasks, Llama 3.2 is setting the stage for new AI-driven innovations across industries like healthcare, finance, and education.

Augmented Reality: The Next Frontier for Meta

Alongside the Llama 3.2 launch, Meta also showcased its latest augmented reality (AR) and virtual reality (VR) products, signaling the company’s broader ambitions beyond just AI. Mark Zuckerberg introduced the Orion augmented reality glasses, which promise to integrate digital information with the real world, taking AR experiences to the next level.

In addition to Orion, Meta revealed upgrades to its Ray-Ban smart glasses and its Quest mixed-reality headset. These innovations, powered by AI, are a clear indication that Meta is committed to leading the AR and VR space, a sector that many analysts believe will see explosive growth in the coming years.

Wall Street’s Confidence in Meta’s AI Vision

Wall Street analysts are bullish on Meta’s AI prospects, with several major investment firms raising their price targets for the stock. Bank of America now expects Meta shares to hit $630, while JPMorgan has set an even higher target of $640. Jefferies, another key player in the financial sector, reiterated its $600 target for Meta.

The consensus among analysts is that Meta’s aggressive push into AI is positioning it as a key player in the rapidly evolving tech landscape. As Meta continues to refine its AI models and expand its product offerings, analysts expect the company’s stock to climb even higher, though some caution that the full financial benefits of these innovations may take years to materialize.

Meta’s AI Efforts Close the Gap with Competitors

Meta’s AI efforts have already begun to show results. The company now has approximately 185 million weekly active users interacting with its AI tools, a figure that places it just behind OpenAI’s ChatGPT, which has 200 million weekly users. This growth highlights Meta’s rapid progress in the AI space and suggests that the company could soon surpass some of its competitors.

Meta’s strategy of open-sourcing its AI models also differentiates it from rivals like OpenAI and Google, whose models are more proprietary. This approach allows developers to build on Meta’s technology and create their own applications, accelerating innovation and potentially giving Meta a competitive edge in the AI arms race.

Challenges in Monetizing AI Innovations

While Wall Street is optimistic about Meta’s AI future, some analysts have noted that it could take time for the company to fully monetize its AI advancements. Jefferies analysts, for example, mentioned that there might be a multi-year lag between Meta’s current investments in AI and its ability to generate substantial revenue from these efforts. However, the analysts remain confident in Meta’s ability to successfully scale and commercialize new products, as the company has done in the past with its social media platforms.

Reality Labs: A Billion-Dollar Gamble

One of Meta’s most ambitious (and costly) ventures is its Reality Labs division, which focuses on developing products for the metaverse. While Zuckerberg has been vocal about his belief in the long-term potential of the metaverse, Reality Labs has yet to turn a profit. In fact, the division has cost Meta a staggering $50 billion to date, and JPMorgan analysts project that Reality Labs will lose an additional $23 billion by 2025.

Despite these financial setbacks, Meta continues to invest heavily in the metaverse. The company views Reality Labs as a long-term bet that could eventually revolutionize how people interact with technology and digital environments.

Meta’s Stock Momentum

Meta’s recent stock performance reflects the market’s faith in the company’s AI-driven future. Over the past year, Meta’s stock has soared by nearly 91%, including a more than 60% increase in 2024 alone. This makes Meta one of the “Magnificent Seven” Big Tech stocks that have seen record-breaking growth in recent months.

With Wall Street analysts maintaining strong buy ratings on Meta’s stock, the company is poised to continue its upward trajectory. The average price target for Meta shares over the next 12 months is $583, according to Bloomberg consensus estimates, though some analysts predict even higher valuations.

Conclusion

Meta’s AI ambitions are paying off, as evidenced by the company’s stock reaching an all-time high. The launch of Llama 3.2, along with its foray into augmented and virtual reality, positions Meta as a leader in both AI and the next generation of immersive technologies. While challenges remain—particularly with monetizing AI and the continued financial losses from Reality Labs—Wall Street’s confidence in Meta’s future is undeniable. As the company continues to innovate and expand its AI offerings, Meta is well on its way to solidifying its place at the forefront of the tech industry.

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