Is It Too Late to Buy Meta Platforms Stock as the Historic Win Streak Continues?

It’s a major Monday for Meta Platforms (META), with the tech giant expected to initiate performance-based layoffs affecting approximately 5% of its global workforce on Feb. 10. Simultaneously, the company is accelerating hiring for artificial intelligence (AI) and machine learning roles as part of its strategic shift toward AI development. This move aligns with Meta's plans to significantly increase capital expenditures to $65 billion in 2025, largely focused on AI infrastructure investments.

At the same time, META stock is looking to extend its longest-ever daily win streak. The AI stock has outperformed many of its mega-cap peers in recent weeks, brushing off even the threat of China’s low-cost DeepSeek AI chatbot to string together an incredible 15-session rise. META’s stock is now up nearly 23% in 2025, reaching a market capitalization of $1.81 trillion. 

Helping to fuel this positive price action is Meta’s strong financial performance, with the social media company's fourth-quarter revenue for fiscal 2024 rising 21% year-over-year to $48.4 billion, while net income reached $20.8 billion. For the full year 2024, Meta's revenue grew 22% to $164.5 billion, with profits surging 59% to $62.4 billion.

Meta's focus on AI development, including its AI assistant and investments in data centers, is driving investor confidence and institutional support. The company's AI-focused advertising tools, such as Advantage+, have yielded significant growth, and this success in AI implementation has contributed to the stock's 329% return since early 2023.

While some analysts express skepticism regarding user engagement on newer platforms like Threads and the effectiveness of Meta's AI-driven search function, most remain optimistic. With 53 analysts in coverage, no fewer than 45 rate META stock a “Strong Buy.” 

However, with META trading just 3% away from its average 12-month price target of $736.60, some caution is advised - particularly given the company's already massive market cap, and potential future competition that could challenge its dominance. Plus, based on its current 14-day Relative Strength Index (RSI) north of 80, META stock is currently more overbought now than it’s been in a year.