Meta Platforms Inc META is setting new standards. The stock marked its 16th consecutive winning session on Monday, making it the leader among the Magnificent Seven.

Trading at $717.40, it is nearing its record high of $725.01, and investor interest is at an all-time high.

Navigating Through AI Challenges and Growth

Even amid anxiety over AI investments—exemplified by Chinese startup DeepSeek affecting Nvidia Corp NVDA—Meta remains steady. Unlike chip manufacturers that depend heavily on hardware demand, Meta’s AI functionality in Advantage+ shopping ads saw 70% growth last quarter, achieving a $20 billion annual run rate.

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Internal Changes at Meta Amid Growth

Despite its stock’s consistent rise, challenges persist at Meta’s headquarters in Menlo Park. The company is laying off 3,000 employees this week as part of a performance initiative. CEO Mark Zuckerberg has indicated that the next couple of years may be “challenging” as the company increases its focus on AI and the metaverse.

In a discussion with comedian Joe Rogan, Zuckerberg mentioned plans to replace mid-level engineers with AI systems.

Interestingly, Wall Street is reacting positively to these layoffs. Unlike past downturns that caused market fears, investors view this shift as a path to a more efficient Meta.

Bullish Indicators for Meta Stock

Meta is currently trading above its eight, 20, 50, and 200-day simple moving averages, reflecting a strong bullish trend. The MACD (moving average convergence/divergence) stands at 28.12, while the RSI (relative strength index) sits at an impressive 80.22, suggesting strong market momentum. However, such a high RSI could indicate the stock is becoming overheated.

Looking Ahead

With Nvidia’s earnings report on the horizon, the AI sector may face some volatility.

For the time being, Meta stands out as the only stock among the Magnificent Seven to have surged past earnings, and bullish sentiment remains strong. The pressing question is whether this winning streak can continue or if a pause is on the horizon.

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