Meta's $12.17B Surge Vaults It to 7th in Market Activity on AI Boost and Fed Rate-Cut Hopes

Meta Platforms (META) surged 3.51% on August 4, 2025, with a trading volume of $12.17 billion, ranking seventh in market activity. The rally followed a strong second-quarter earnings report, with revenue rising 22% to $47.52 billion and EPS climbing 38% to $7.14, both exceeding Wall Street forecasts. Management attributed the results to AI-driven improvements in ad efficiency, prompting Barclays to raise its price target to $810 from $640.

Investor sentiment was further fueled by a weak U.S. jobs report, which boosted expectations of a September Federal Reserve rate cut. The July employment data added just 73,000 jobs, significantly below estimates, pushing the probability of a rate reduction to 85%. Lower borrowing costs are seen as favorable for corporate spending and tech sector valuations, amplifying Meta’s gains.

The stock’s performance reflects confidence in its AI strategy, with 2025 capital expenditures projected at $66–72 billion, a $30 billion increase from 2024. Enhanced recommendation algorithms and generative AI tools are driving user engagement, particularly on Instagram and Facebook, where video consumption grew over 20% year-over-year. Ad revenue rose 22%, supported by a 5% increase in Instagram ad conversions and expanded AI-powered creative tools for advertisers.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day delivered a 166.71% return from 2022 to the present, outperforming the benchmark by 137.53%. This highlights the significance of liquidity concentration in short-term performance, particularly in volatile markets, where high-volume stocks like Meta can amplify gains through institutional and algorithmic trading activity.