Meta rises nearly 2% intraday, hitting a new all-time high; becomes the sixth U.S. publicly traded company with a market cap exceeding $2 trillion.

Meta rises nearly 2% intraday, hitting a new all-time high; becomes the sixth U.S. publicly traded company with a market cap exceeding $2 trillion.

Meta Platforms Inc. (META) has reached a significant milestone today, with its stock price surging to a new all-time high and the company becoming the sixth U.S. publicly traded company with a market capitalization exceeding $2 trillion. The stock rose nearly 2% intraday, reaching a level of $789.03.

This remarkable achievement comes on the heels of Meta's strong second-quarter 2025 results and upbeat third-quarter guidance. The company reported a 22% year-over-year (YoY) jump in revenue to $47.52 billion, while earnings per share surged 38% to $7.14, surpassing analyst expectations by over $0.40 [2].

Meta's growth is being driven by several key factors. Firstly, the company's aggressive deployment of artificial intelligence (AI) tools, such as Advantage+, has significantly bolstered its ad revenue. Advertising accounted for $46.6 billion of the total revenue, with the average price per ad rising 9% and ad impressions up 11% [2].

Secondly, Meta's expansion into the metaverse, particularly its Reality Labs division, continues to gain traction despite significant losses. The company has emphasized cost discipline and paused certain hardware rollouts, but continues to invest in key projects like Ray-Ban smart glasses and the Quest platform [2].

Moreover, Meta's Threads app has shown remarkable growth, surpassing 400 million monthly active users (MAUs) just two years after its launch. This growth has been driven by a wave of new features, including direct messages (DMs), fediverse integrations, custom feeds, and AI tools [3].

Analysts have been bullish on Meta's prospects, citing accelerating ad revenue growth, surging engagement, and rapid progress in AI-driven monetization. They noted that Meta's heavy AI investments are already delivering stronger ad conversions, deeper user engagement, and new revenue streams [3].

Despite these positive developments, investors should be aware of potential risks. Regulatory scrutiny, particularly around data privacy and antitrust, remains a material overhang. Additionally, the pace of capital expenditures (capex) spending could weigh on near-term free cash flow if ad growth moderates. A macro slowdown in global advertising demand would also challenge Meta's revenue trajectory, especially in cyclical verticals like retail and travel [2].

In conclusion, Meta's rise to a $2 trillion market cap is a testament to the company's strong performance and strategic positioning. However, investors should remain vigilant about potential risks and keep a close eye on the company's financials and regulatory environment.

References:
[1] https://www.investors.com/research/ibd-stock-of-the-day/meta-stock-zuckerberg-ai-two-trillion/
[2] https://www.tradingnews.com/news/meta-nasdaq-meta-stock-targets-800-usd
[3] https://www.benzinga.com/markets/tech/25/08/47070235/meta-stock-hits-new-high-as-threads-rockets-past-400-million-users