Meta Platforms Stock Makes 16th Consecutive Daily Gain as Restructure Continues

Meta Platforms stock (NASDAQ: META) has been making steady performance gains since the start of this year, with an impressive 16 consecutive days of increases bringing an increase of 17.4%. The latest closing price of $717.40 is another record made by a company that continues to push boundaries.

The most recent of which comes as the firm announced a significant organisational change by cutting 5% of its workforce, which translates to approximately 3,600 employees. This move comes as Meta intensifies its focus on the development of artificial intelligence (AI) technologies. The layoffs are part of a broader strategy to transform Meta from primarily a social media company into an AI-driven business, aligning with global trends towards digital innovation.

The layoffs announced by Meta are not restricted to any specific geographic region, indicating a company-wide move to streamline operations and refocus on AI. Despite the workforce reduction, Meta remains committed to strengthening its capabilities in AI and machine learning. This shift will comprise an expedited hiring process set between February 11 and March 13, focusing primarily on recruiting machine learning engineers and professionals experienced in AI-related fields.

From an investment standpoint, Wall Street analysts have shown a strong positive outlook on Meta Platforms, providing a consensus rating of Strong Buy. In the past three months, Meta has seen 43 Buy ratings, 3 Hold ratings, and just 1 Sell rating. This consensus underscores investor and analyst faith in Meta's evolving business model and strategic emphasis on AI, which is seen as a vital component of future growth.

Meta's strategic transition towards an AI-first business approach, coupled with strategic layoffs and targeted hiring, is a significant indicator of the company's direction. Despite the immediate impact on the workforce, the market appears to support Meta's long-term vision for AI-driven transformation.