CandleFocus Meta shrugs Deepseek hype, goes on a 10-day gain streak
2025-01-31
Author: Content Editor
Meta Platforms Inc. (Meta) has shown resilience in the face of the disruptive DeepSeek R1 model's release in the Chinese AI industry. While other tech companies, such as Nvidia and Microsoft, suffered significant losses due to the model's cost-effectiveness, Meta's stock experienced a 10-day streak of gains. Meta's success can be attributed to its AI strategy, particularly in improving ad targeting, which is its major revenue driver. The company remains committed to AI development, as evidenced by its recent $65 billion budget for AI-related projects in 2025. Meta's CFO notes that the company's reliance on ad revenue instead of selling the AI model has made it immune to DeepSeek's impact. Investors are optimistic about Meta's future profitability and the role of AI in advertising.
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