Can Meta Repeat Its Stellar 2023 Stock Performance in 2024?

Written By Debra Aho Williamson

January 22, 2024—Meta’s stock price surged 194% last year, second only to red-hot Nvidia in the Nasdaq. It was a remarkable turnaround for a company that had a brutal 2022. Will it continue in 2024?

As the company approaches its 20th anniversary next month, it's got a lot at stake. A repeat of 2023's performance will be a tall order.

Here are three reasons why:

➡️ The digital ad market is recovering, but it's not 100% out of the woods yet. Nearly all of Meta's revenue comes from advertising.

➡️ AI is overshadowing the metaverse right now, and Meta is pulling out all the stops to demonstrate the connections between the two, and to defend its spending on Reality Labs. Investors have been willing to look past those billions of dollars of losses because Meta's ad business has performed so well. If Meta's ad business falters, they won't be as happy.

➡️ Deepfakes and other AI-created disinformation and misinformation will test Meta's content moderation capabilities. Meta couldn't stem the tide of bad actors in the pre-AI era. It's going to struggle even more in the AI era, especially as the 2024 US election heats up.

For more on Meta's 2024 year ahead (and my insights into the factors that will drive its business performance), check out this article in Investors Business Daily.

Debra Aho Williamson

Debra Aho Williamson is a dynamic analyst and market influencer known for her ability to spot shifts in consumer behavior that create tectonic changes in marketing strategies. As founder and chief analyst at Sonata Insights, Debra provides research and advisory services to businesses that want to break new ground and lead industry conversations about the transformative impact of AI on marketing and consumer behavior.

https://www.sonatainsights.com/
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