Meta Shares Soar 11.29% on Strong Q1 Earnings

Meta (META) shares surged 0.51% today, marking the third consecutive day of gains, with a cumulative increase of 11.29% over the past three days. The stock price reached its highest level since March 2025, with an intraday gain of 1.01%.

The strategy of buying META shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 9.77% annualized gain. This suggests a defensive approach, as the strategy largely avoided the declines of the 2022 market downturn, capturing some of the subsequent recovery rally. However, the returns were relatively modest, indicating that META's high volatility and the timing of subsequent market movements posed challenges for this strategy.

Meta Platforms, Inc. (META) reported its best quarterly financial results among the Mag 7 stocks during the current earnings season. This strong performance has been a significant driver for the company's stock price. Stephanie Link, a well-known investor, highlighted Meta's success on CNBC and recommended investing in META stock due to its effective monetization of AI, which has increased user engagement on Facebook and Instagram.

In Q1 2025, Meta Platforms enabled more AI tools for advertisers, potentially driving higher growth through more personalized ads. This initiative could positively impact the stock by boosting advertising revenue. The enhanced AI capabilities are expected to attract more advertisers, leading to increased ad spending and higher revenue for the company.