Meta hits $1 trillion market cap, first time since 2021

CEO Mark Zuckerberg's cost-cutting measures propel Meta's efficiency
Meta hits $1 trillion market cap, first time since 2021
Meta's stock soars

Meta, formerly known as Facebook, achieved a market capitalization exceeding $1 trillion. The company‘s shares closed on January 24 at $390 per share, representing a gain of over 1 percent and contributing to a remarkable rally. Meta had previously reached the $1 trillion market cap milestone in 2021, marking its inaugural achievement. In September of that year, its market cap neared $1.1 trillion.

The impressive surge in Meta’s stock performance can be attributed to its remarkable growth, with the company’s shares skyrocketing by nearly 200 percent last year.

Cost-cutting measures and job cuts

CEO Mark Zuckerberg implemented cost-cutting measures that resulted in over 20,000 job cuts, leading to improved efficiency. Following a substantial decline in 2022, where Meta’s stock hit a six-year low, Zuckerberg referred to 2023 as a “year of efficiency.”

During Wednesday’s trading session, Meta’s shares reached a peak of approximately $396 per share. By the end of the market day, the stock had gained more than 10 percent year-to-date.

Read more: Netflix’s resurgence: 13 million new subscribers, surpassing $8.8 billion in sales

Optimism prevails

Investors are optimistic about Meta’s future as it aims to solidify its position as a prominent player in the field of artificial intelligence.

Meta is scheduled to announce its fiscal fourth-quarter earnings on February 1.

Similarly on the same day, Microsoft also achieved a significant market cap milestone, briefly surpassing $3 trillion in value. This achievement occurred nearly two weeks after Microsoft overtook Apple as the world’s most valuable public company. However, Apple has since reclaimed its top position.

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