With a market cap of $1.7 trillion, Meta Platforms, Inc. (META) is a global leader in digital communications and advertising technology, operating some of the world’s most widely used social media platforms, including Facebook, Instagram, WhatsApp, and Messenger. 

Companies valued at over $200 billion or more are generally classified as “mega-cap” stocks, and Meta Platforms fits this criterion perfectly. The company generates the vast majority of its revenue through digital advertising, leveraging its unparalleled user base and sophisticated ad targeting capabilities, which are powered by artificial intelligence and extensive proprietary data.

However, the social media company dipped 13.1% from its 52-week high of $740.91, reached on Feb. 14. Over the past three months, shares of META have declined 3.7%. In comparison, the S&P 500 Index ($SPX) has dropped 1.1% during the same time frame. 

But, in the longer term, META has rallied 9.9% on a YTD basis, outperforming $SPX’s marginal rise. Moreover, shares of Meta Platforms have risen 34.1% over the past 52 weeks, compared to $SPX’s 11% return over the same time frame.

META stock has been trading above its 50-day and 200-day moving averages since the start of this month, indicating a bullish trend. 

On May 27, Meta Platforms closed over 2% higher, contributing to a broader market rally. 

However, on May 16, Meta shares dipped marginally, underperforming the broader market, following reports that the company is delaying the launch of its flagship AI model, code-named “Behemoth.” 

Originally slated for an April debut to coincide with Meta’s first AI developer conference, the rollout has now been postponed to fall or later due to engineering challenges in improving the model’s functionality. The delay has dampened investor sentiment, especially given CEO Mark Zuckerberg’s strong emphasis on AI as a key driver of future growth.

In comparison with its rival, Alphabet Inc. (GOOG) has lagged behind META, with a 9% decline on a YTD basis and a 2.6% dip over the past 52 weeks.

META has a consensus rating of “Strong Buy” from the 53 analysts covering the stock. META’s mean price target of $697.27 implies an upside potential of 8.3% from the prevailing price levels.