Meta Platforms, Inc. META is riding a 16-day win streak thanks to its aggressive AI initiatives, while Tesla Inc. TSLA struggles with EV headwinds—yet Wedbush analyst Dan Ives remains optimistic about Elon Musk's long-term robotics and AI strategy.
What Happened: On Tuesday, while appearing on a CNBC segment, Ives highlighted Meta's AI-driven monetization strategy.
"It's about monetizing those three and a half billion DAUs," he said, adding that AI innovations "could be an incremental $100 per share" for Meta as the company ramps up its efforts.
Tesla has faced challenges in the EV sector, he said but Ives believes its future lies beyond just cars. "It's about autonomous. It's about ultimate robotics. That's really the future. That's why we're bullish on Tesla," he stated.
Meta and Tesla stock performance in the last 16 days:
| Stock | Jan. 27, 2025 Price | Feb. 11, 2025 Price | Percentage Change |
| Meta | $659.88 | $719.80 | +9.08% |
| Tesla | $397.15 | $328.50 | -17.29% |
Ives also addressed concerns about AI infrastructure spending and the role of China's DeepSeek. He discussed the impact of the Jevons Paradox on AI infrastructure investment, suggesting that as costs decrease, investment will rise.
However, he said that the software aspect is where significant growth is expected, with companies like Palantir Technologies Inc. PLTR and Salesforce Inc. CRM poised to benefit.
Why It Matters: Companies like Amazon.com Inc. AMZN, Microsoft Corp. MSFT, Meta, and Alphabet Inc. GOOG GOOGL are investing a record $320 billion in AI infrastructure this year.
This is a significant increase from $246 billion in 2024.
Amazon plans to invest over $100 billion, while Microsoft and Alphabet each aim for $80 billion. Meta follows with more than $60 billion for AI.
Wall Street doubts Big Tech's spending spree. China's DeepSeek also shook the market with a cheap, high-performance AI model. Investors fear falling AI costs could undercut Big Tech's massive bets.
Price Action: Meta’s stock edged up 0.011% to $719.88 in after-hours trading after closing at $719.80 on Tuesday, gaining 0.33%. Tesla’s stock dipped 0.53% to $326.75 after hours, following a 6.34% drop to $328.50 at Tuesday's close, according to Benzinga Pro.
Image via Shutterstock
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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