Meta stock surges, adding $120 billion in market value

The AI boom is expanding across all industries, but markets are increasingly concerned about whether the substantial investments tech companies are making will yield returns on investment in the near future. Synovus Trusts VP and senior portfolio manager Daniel Morgan joins Catalysts to discuss this trend.
Morgan observes that nearly all major tech companies are investing aggressively in AI. He notes an interesting pattern: if companies invest in AI but their core businesses underperform, investors are unimpressed. However, if AI investments coincide with strong core business performance, companies are rewarded by the market.
Regarding Wall Street's acceptance of Meta Platforms' (META) high capital expenditure (CapEx) spend on AI, Morgan explains, "I think it's the fact that we're seeing a better return on investment versus metaverse... and I think that's why they're getting rewarded."
Meta stock continues to rise in Thursday's session after topping second quarter earnings estimates on Wednesday.
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