Meta's Week
Meta had a strong week after several announcements. Today carried some headline risk: the company is accused of breaking EU law with "addictive" features on Instagram and Facebook. That regulatory threat did not drag the stock down. Buyers stayed focused on the cloud and chip news from this week.
Citizens cut its price target on Meta but kept an "outperform" rating. The firm says Meta's release of NewSpark 1.1 and its public-preview model API is a real step toward competing with the top AI labs, and it backs the view that computing demand will keep rising. These moves show Meta trying to make its mark in AI models against OpenAI, Anthropic, and Google, all of which started earlier.
Traders on the floor split on what it means. One point: a cloud over Meta had been whether it could make money from AI at all, or how. Now buyers are working out what Meta is actually doing, and the stock is being rewarded. The counterpoint: this week's move is just money rotating back into the hyperscalers.
SK Hynix's U.S. Debut
SK Hynix started strong in its U.S. debut, up 13% and closing at 168. This is expected to be a big test for chip valuations, and specifically for memory chip valuations, going forward. There is hope it narrows the gap between SK Hynix's and Micron's multiples. It also raises questions about the "Korean discount," the long-held idea that Korean stocks trade below their global peers.
The Week Ahead
Earnings kick off with the big banks. JPMorgan, Bank of America, Goldman, Wells, and Citi all report Tuesday, making it a busy day. Healthcare names UNH and J&J also report; that sector has run well lately as part of the rotation. Technology earnings start too, more from international players: Netflix, plus ASML and TSM. ASML and TSM delayed some reporting today because of a typhoon in that region.
On data, it is a big week for U.S. inflation with both CPI and PPI, which feed the Fed's thinking. That matters more now given another pickup in oil prices and the ceasefire that President Trump says is over. U.S. retail sales are also due. From China, the world's second biggest economy, expect imports, exports, GDP, and other economic activity numbers.
