Why Meta Platforms Rallied Today
Shares of Meta Platforms (NASDAQ: META) were rallying today, up 6.1% in Friday trading.
Today's only major announcement was that Meta would be cutting some prices of its newer virtual reality (VR) headsets. That actually should be a negative, as it suggests demand for the company's new metaverse products might not be as strong as hoped, given higher interest rates and recession fears.
However, basically all of Meta's revenues still comes from advertising across its family of apps. And on that front, investors may be getting more optimistic on the health of the economy as interest rates backed off recent highs today. Earlier this week, a major publication also reported that Meta's new AI tools are increasingly helpful to advertisers.
Source Fool.com
