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After losing two-thirds of its stock value in 2022, Meta has picked up the slack to become one of the best performers in the S&P 500 this year. According to data presented by AltIndex.com, Meta’s market cap has surged by 105% year-over-year, showing the biggest increase among the Big Five tech giants.
Last year, Meta’s stock nosedived as Wall Street grew concerns about the company’s rising costs and expenses. The move to Metaverse dragged down profit, as the company lost $9.4B in the nine months of 2022. The rising costs and plunging profits led to 11,000 layoffs, or 13% of Meta’s workforce, and caused its stock value to plummet by 70% last year, more than the loss of any other major tech company.
However, 2023 brought a recovery, and the company not only redeemed last year’s loss but outperformed other tech giants. According to YCharts data, Meta’s market cap doubled between December and March, jumping from $271.4B to $531.5B.
However, that was just the start of their recovery. Three months later, Meta’s market cap jumped up to $738.4bn. After the social media giant reported better-than-expected second-quarter results, Meta shares jumped to their highest since early 2022, pushing its market cap to over $837B in July.
Although the company’s stock value has dropped by 6% since then, reaching $782bn last week, that still represents a massive 105% increase year-over-year.
Other tech giants saw much smaller stock value growth in this period. Statistics show Apple’s market cap increased by 61% year-over-year, rising from $2.27trn to $2.66trn. Microsoft and Alphabet saw three times more negligible stock value growth than Meta. In September 2022, Microsoft’s market cap stood at $1.77T, and now it’s $2.33T. Alphabet’s stock value increased from $1.31T to $1.67T year-over-year.
The YCharts data also showed that Amazon saw the smallest market cap growth of all five tech giants. The combined value of shares of the e-commerce giant amounted to $1.3trn last week, 11% more than in September 2022. Overall, the combined stock values of the Big Five tech companies grew by $1.8T in this period, rising from $6.9T to $8.7T
According to data from the alternative data platform AltIndex, Meta’s stock sentiment across social media has also improved significantly in the past year. The platform’s algorithms have analysed data from the top investing forums and showed the tech giant has a sentiment score of 82 out of 100, up from 70 in September last year.
That means Meta overperforms the majority of its industry peers and has more positive discussions in stock forums than most other companies.
