Meta just had the kind of week that makes portfolio managers forget about the metaverse years entirely. Shares of the social media giant climbed roughly 6% on July 10 and gained nearly 15% for the week, marking its strongest weekly performance since early 2024.
The catalyst? A combination of new AI product announcements and growing confidence that Mark Zuckerberg’s massive bet on artificial intelligence is about to start paying dividends.
New AI products, new revenue story
Meta unveiled two new AI products that caught traders’ attention: Muse Spark 1.1, designed for agentic and coding tasks, and Muse Image, a generative image tool. Together, they signal concrete monetization opportunities in AI compute and cloud services.
Meta has been spending heavily on AI infrastructure. The company’s 2026 capital expenditure guidance sits between $125 billion and $145 billion, almost entirely directed at AI-related investments.
