Meta stock rises on potential AI partnership in India

Meta Platforms' stock rose significantly on Monday, climbing 3.9% by the end of the trading day. Earlier in the day, the stock had been up by 4.4%. This increase coincided with gains in the broader market, with the S&P 500 and Nasdaq Composite rising by 1.8% and 2.3%, respectively. The surge in stock price comes as Meta engages in talks with Reliance Industries, a large Indian company. They aim to expand Meta's presence in artificial intelligence (AI) in India. Reports indicate that they are negotiating a partnership to host Meta's AI models at a new data center in Jamnagar, Gujarat. This facility is expected to become the largest AI data center in the world. Meta's core business remains strong, benefiting from a large social media user base. The company reported record revenue of $164.5 billion for 2024, marking a 22% increase from the previous year. Even if the deal with Reliance does not happen, Meta is still in a robust position. With a price-to-earnings ratio of 25.7, analysts suggest that its stock is fairly valued.