We recently published a list of 10 Mega Cap Stocks Gaining Bullish Momentum This Week. In this article, we are going to take a look at where Meta Platforms, Inc. (NASDAQ:META) stands against other mega cap stocks gaining bullish momentum this week.
The S&P 500 index started the week with a bang after staying under pressure for a few days. There was a realization that Wall Street may have overestimated the impact of tariffs. Once the dust settles, the market will continue to go higher, just like the US economy which continues to grow despite challenges.
When the broader market corrects itself due to uncertainty, such as the one brought about by Trump’s tariff wars, mega-cap stocks also get affected. This provides investors, especially the ones that invest at regular intervals, to take another bite of these impressive stocks. The same situation happened during the last week, and we believe that after Monday’s impressive recovery, the trend is about to reverse.
Mega cap stocks like the ones in our list have driven the market in recent months and are therefore likely to be the ones leading it again. We decided to come up with the top 10 mega-cap stocks in the S&P index that have lost a considerable chunk of value in the last month and are now trading at a discount, a valuation gap that could quickly be recovered during this week’s trading.
To come up with the list of 10 oversold S&P 500 Mega-Cap Stocks To Trade This Week, we only looked at stocks with a market cap of at least $200 billion that have lost the most value in the last month.
A team of developers working in unison to create the company’s messaging application.
Meta Platforms, Inc. (NASDAQ:META)
Meta Platforms, Inc. (NASDAQ:META) develops products that enable people to connect and share with their family and friends through PCs, augmented reality, mobile devices, wearables, and virtual reality and mixed reality headsets. The company operates in the Reality Labs (RL) and Family of Apps (FoA) segments.
At one point earlier this month, Meta stock had lost 20% of its value after registering multiple weeks of daily gains. The stock regained a lot of that value in the last 5 trading days but there is still a lot more to go. Meta Platforms (NASDAQ:META) announced recently that its Llama AI models had now been downloaded a billion times.
“From top tech companies to universities, people and organizations all over the world are using Llama to innovate, drive scientific advances, and unlock new economic opportunities.”
This is in line with Mark Zuckerberg’s vision of creating the largest open source AI model in the world. He is not shying away from spending enormous amounts of money to build these models, a plan that was dealt a reality check after China’s emergence with similar models at a much lower cost.
AI continues to represent the biggest opportunity when it comes to Meta (NASDAQ:META). Apart from the AI models, the company has used its AI technologies perfectly in advertising. Users have started spending more on advertising as they start seeing better results thanks to AI. But that is just a small part of the bullish thesis.
If Google continues to lose advertising market share at the current pace, there could come a point where people realize they can’t reach their target market as effectively with Google as they can with Meta. That’s when the real shift will happen.
Overall, META ranks 5th on our list of mega cap stocks gaining bullish momentum this week. While we acknowledge the potential of META as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as META but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
