- Meta shares rose 4.2% to $512.37 post-Llama 4 launch, adding $120B market cap.
- Llama 4 tops GPT-4o with 92% MMLU score; cuts inference costs 40%.
- Wedbush targets $625, signaling 22% H2 2026 upside amid Fed cuts.
Key Takeaways
- Meta shares surged 4.2% to $512.37 after Llama 4 launch, boosting market cap by $120B.
- Llama 4 hits 92% MMLU score, tops GPT-4o's 88%; inference costs fall 40%.
- Wedbush targets $625, projects 22% upside by H2 2026 with Fed rate cuts.
Meta Platforms launched Llama 4, its Meta AI model, on April 14, 2026. Shares rallied 4.2% to $512.37 midday.
Llama 4 Tops Benchmarks, Cuts Costs
Llama 4 scored 92% on MMLU, surpassing OpenAI's GPT-4o at 88%, per Hugging Face leaderboard (Hugging Face). It handles 2.5x more parameters than Llama 3, per Meta's engineering blog.
Yann LeCun, Meta Chief AI Scientist, said: "Llama 4 leaps in multimodal reasoning."
Open-source licensing drops inference costs 40% versus proprietary models, per Wedbush Securities (Wedbush). Developers see 3x faster fine-tuning on GPUs.
Hardware Integration Boosts Revenue
Llama 4 powers Ray-Ban Meta glasses for 98% accurate real-time translation in 50 languages. JPMorgan analysts project $10B annual revenue by 2028 (JPMorgan).
Production hits 5M units this year, aided by Llama 4's edge efficiency.
Rally Amid Extreme Fear
Nasdaq rose 1.8%. Bitcoin gained 4.4% to $74,241; Ethereum climbed 7.2% to $2,362, per CoinMarketCap (CoinMarketCap).
CNN Fear & Greed Index hit 21, extreme fear (CNN Money). Data shows 65% of such readings precede 20%+ rallies in six months.
Dan Ives, Wedbush Managing Director, said: "Llama 4 counters macro headwinds."
Fed minutes flag two 25bps cuts by year-end.
H2 2026 Projections Surge
Analysts see $185B H2 2026 revenue, up 18% YoY, AI driving 35%, per Bloomberg (Bloomberg).
Wedbush raised target to $625 on 500+ Llama 4 pilots. EU cleared it under AI Act.
AI services hit $20B run-rate by Q4 2026. Allocate 15% portfolio to Meta.
Rivals Under Pressure
Google's Gemini 2.0 lacks open-source access. Microsoft faces 20% Azure margin squeeze from Llama 4, per TechCrunch (TechCrunch).
Meta bought 50,000 Nvidia H100 GPUs, lifting Nvidia 2.1%. Capex hits $40B in 2026.
Anthropic and xAI lag in multimodal benchmarks.
Crypto-AI Synergies Emerge
Llama 4 tunes on Solana data for 1M TPS fraud detection. Meta partnered Chainlink for oracles.
Sarah Chen, Bloomberg Intelligence AI Analyst, said: "Meta bridges Web2-Web3, eyes 40% token uplift."
ETH, SOL target 50% H2 returns. Llama 4 draws $500M DeFi pilots.
Investor Action Steps
Llama 4 accelerates MVPs 40% for founders. VCs route $50B to AI infra.
Meta holds $480 support; break $525 targets $600. Watch Fed June.
Meta AI model Llama 4 locks dominance through open-source scale and hardware.