Major US Indices Close Marginally Lower, Nasdaq Down 0.24%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 30 2025
0mins
Should l Buy META?
The major averages closed marginally lower on the penultimate trading day of the year as markets contend with light year-end volumes and a pullback in heavyweight tech and AI names that stalled last week's strong rally. In Fed news, minutes from the latest FOMC meeting show that "most" on the committee have judged that further rate cuts would likely be appropriate if inflation declines over time as expected. In addition, FOMC members have generally judged that upside risks to inflation remained elevated and that downside risks to employment were elevated and had increased since the middle of 2025.Looking to commodities, gold edged higher following yesterday's sharp losses, while oil was fractionally lower ahead of the API crude numbers set for release this afternoon.Get caught up quickly on the top news and calls moving stocks with this Midday Fly By.1. STOCK NEWS:Meta PlatformsAI startup Manus, with the Wall Street Journal reporting that Meta is paying over $2B for the businessApplied Digitalits cloud computing business with Ekso BionicsOn24by Cvent for $8.10 per share in cashCiti'sboard approved a plan toAccording to, "most" on the FOMC have judged that further rate cuts would likely be appropriate if inflation declines over time as expected2. WALL STREET CALLS:ArgusBHP Groupto Buy on "firming" commodity pricesMereo BioPharmato Hold at JefferiesBenchmarkLindblad Expeditionswith a Buy on high growth visibilityStephensof Rubrik, Commvault, and AvePointwith Overweight ratings and Varonisat Equal Weight3. AROUND THE WEB:SMICintends to acquire the remaining 49% stake in unit SMNC for Y40.6B, or $5.79B, giving the company full control of the subsidiary,The U.S. government has granted Samsung Electronicsand SK Hynixan annual license to bring chip manufacturing equipment to their Chinese facilities for 2026,Power-hungry AI projects are benefiting Caterpillaras a range of customers looks to purchase the company's engines and generators,Softbankhas completed its $40B investment in OpenAI,Warner Bros. Discoveryplans to reject Paramount Skydance'sbid next week,4. MOVERS:Hycroft Miningincreases after filing aBoeinggains after being awarded afor the F-15 Israel Program and a ceiling $4.2B modification to a previously awarded Air Force contract for E-4B contractor logistic serviceEnergy Fuelsfalls after Roth Capital said shares of the companyTruth Medialower after Yorkville America launchedon the New York Stock Exchange5. EARNINGS/GUIDANCE:Ree Automotivereported, with EPS higher year-over-yearEtoiles CapitalreportedCemtrexreported, with revenue higher year-over-yearAMTD IDEA Groupreported, with CFO Xavier Zee commenting, "We are proud to deliver another half year of strong performance"INDEXES:The Dow fell 94.87, or 0.20%, to 48,367.06, the Nasdaq lost 55.27, or 0.24%, to 23,419.08, and the S&P 500 declined 9.50, or 0.14%, to 6,896.24.
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Analyst Views on META
Wall Street analysts forecast META stock price to rise
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 653.560
Low
655.15
Averages
824.71
High
1117
Current: 653.560
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Tech Stocks Drive Market: In recent years, exceptional performances by tech stocks like Nvidia, Meta, and Broadcom have contributed to a more than 500% increase in the Nasdaq-100 index over the past decade, highlighting the significant impact of the tech sector on market returns.
- QQQ ETF Advantages: The Invesco QQQ ETF, the largest exchange-traded fund tracking the Nasdaq-100 index, manages approximately $395 billion in investor assets, and its expense ratio of 0.18% is well below the average, attracting a large number of investors.
- Investment Concentration Risk: The QQQ ETF's investments are heavily weighted towards companies with the largest market capitalizations, with Nvidia accounting for 8.4% and the smallest company, Atlassian, only receiving a 0.07% allocation, indicating that a disproportionate amount of investor capital is tied to a few mega-cap tech firms, increasing investment risk.
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- Ad Revenue Growth: Meta has improved its recommendation algorithms using AI, resulting in an 18% increase in ad impressions and a 6% rise in ad prices, with overall revenue growth at 24%, expected to accelerate in Q1 2026, showcasing its strong performance in the advertising market.
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- E-commerce and AI Synergy: Amazon's e-commerce business has achieved significant operational efficiency gains through AI and robotics, driving operational leverage that is expected to further solidify its unique position in agentic commerce and enhance market competitiveness.
- Meta's Advertising Growth: Meta Platforms reported an 18% increase in ad impressions and a 6% rise in ad prices last quarter, with overall revenue growth reaching 24%, indicating strong growth potential in the AI era, which is expected to accelerate further.
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- Tech Stocks Drive Market: In recent years, exceptional performances by tech stocks like Nvidia, Meta, and Broadcom have contributed to a more than 500% increase in the Nasdaq-100 index over the past decade, highlighting the significant impact of the tech sector on market returns.
- QQQ ETF Advantages: The Invesco QQQ ETF, the largest exchange-traded fund tracking the Nasdaq-100 index, manages approximately $395 billion in investor assets, and its expense ratio of 0.18% is well below the average, attracting a large number of investors.
- Investment Concentration Risk: The QQQ ETF's investments are heavily weighted towards companies with the largest market capitalizations, with Nvidia accounting for 8.4% and the smallest company, Atlassian, only receiving a 0.07% allocation, indicating that a disproportionate amount of investor capital is tied to a few mega-cap tech firms, increasing investment risk.
- Future Outlook: While the QQQ ETF may face short-term volatility, the rapid advancements in artificial intelligence and other technologies suggest that investors are likely to achieve significant wealth growth over the long term through this ETF.
See More
Meta Establishes New AI Engineering Organization to Enhance Superintelligence Efforts
- New Organization Formation: Meta is establishing a new applied AI engineering organization aimed at enhancing its superintelligence efforts, which will collaborate with Meta's Superintelligence Lab to build a data engine that helps models improve faster, indicating the company's ongoing investment and strategic focus in the AI sector.
- Team Structure: The new organization will consist of two teams, one responsible for building interfaces and tools, while the other will execute tasks, generate data, and provide feedback, with an ultra-flat structure that is expected to enhance efficiency and accelerate model iteration.
- Leadership Team: The organization will be led by Maher Saba, who also serves as the vice president of Meta's Reality Labs division; Saba emphasized in an internal memo that building great models requires not only researchers and computing power but also real-world data and feedback, highlighting the importance of a data-driven approach.
- Model Development Plans: Meta is working on new AI models reportedly codenamed Avocado and Mango, with CEO Mark Zuckerberg stating in the recent earnings call that the company will begin shipping new models in the coming months, expecting to demonstrate a rapid trajectory of progress that will further solidify its leadership position in the AI field.
See More
Microsoft Faces Challenges from Amazon and Meta in AI Era
- Market Position Analysis: Microsoft currently has a market cap of $2.9 trillion, ranking fourth globally; however, Amazon and Meta, with market caps of $2.3 trillion and $1.6 trillion respectively, are poised to potentially surpass Microsoft in the next decade, highlighting the intense market competition.
- Cloud Computing Competition: Amazon's AWS leads in market share over Microsoft's Azure, and with its Trainium chips, Amazon has built a massive data center, which is expected to enhance its competitive edge in AI, potentially impacting Microsoft's market share.
- Ad Revenue Growth: Meta has improved its recommendation algorithms using AI, resulting in an 18% increase in ad impressions and a 6% rise in ad prices, with overall revenue growth at 24%, expected to accelerate in Q1 2026, showcasing its strong performance in the advertising market.
- Long-Term Growth Potential: With Meta starting to serve ads on WhatsApp and Threads, it has significant future growth potential; combined with its advantages in AI applications, it is expected to provide strong momentum for market cap growth, potentially surpassing Microsoft in the next decade.
See More
Microsoft Faces Intensifying AI Competition
- Cloud Computing Advantage: Amazon holds a leading market share in cloud computing with its custom chips, particularly through AWS, and is expected to leverage its cost advantage to develop a world-class foundational AI model, thereby increasing competitive pressure on Microsoft's Azure.
- E-commerce and AI Synergy: Amazon's e-commerce business has achieved significant operational efficiency gains through AI and robotics, driving operational leverage that is expected to further solidify its unique position in agentic commerce and enhance market competitiveness.
- Meta's Advertising Growth: Meta Platforms reported an 18% increase in ad impressions and a 6% rise in ad prices last quarter, with overall revenue growth reaching 24%, indicating strong growth potential in the AI era, which is expected to accelerate further.
- Market Share Potential: Although Meta's market cap stands at $1.6 trillion, lower than Microsoft's, its success in AI applications and expansion of advertising platforms could enable it to surpass Microsoft in market cap over the next decade.
See More
William Shatner Updates on X Money Service Beta Rollout
- Beta Rollout: William Shatner shared updates on the X Money service's beta rollout, which offers a 6% annual percentage yield (APY), aiming to attract users while raising funds for his charity.
- Welcome Bonus: New users will receive a $25 welcome gift upon signing up for X Money, a strategy that not only enhances user registration appeal but may also promote long-term engagement.
- Feature Offerings: X Money will introduce a metal debit card with cashback features, allowing users to personalize it with their official X handle, and it will incur no foreign transaction fees, significantly enhancing user experience.
- X Chat App: The X team is launching a standalone X Chat app, with the first 1,000 users gaining access via TestFlight, marking a significant step towards achieving the goal of an
See More
Broadcom May Gain from AI, While Nvidia's Stock Decline After Earnings Could Signal Trouble.
Earnings Outlook: Broadcom's earnings are expected to be strong due to increased demand for artificial intelligence technologies.
Market Sentiment: Despite the positive earnings outlook, shareholders should brace for a potentially muted reaction in the stock market as overall sentiment remains uncertain.
See More
