"Meta is one of the most dominant companies in the world. There are over 3.5 billion people that use one of its apps every day, which include Facebook, Instagram, WhatsApp, and Threads. That's a huge base that gives the company ample opportunities to make money from digital advertising. Meta is using AI to better target ads on its platforms and drive higher user engagement with more relevant content recommendations."
"This is one reason why it was able to post a stellar 26% year-over-year increase in revenue in the third quarter. Moreover, it is showing the potential to expand its growth beyond advertising. For example, its Meta AI personal assistant now has over 1 billion regular users, while the Ray-Ban Meta smart glasses are selling well. Analysts expect the company to grow earnings at an annualized rate of about 15%."
"If you're looking to invest some extra cash before the end of the year, Meta Platforms is offering a great buying opportunity after its recent pullback. The Instagram owner is reporting solid revenue growth while investing in artificial intelligence (AI) infrastructure to support the growth in the business over the long term. Meta Platforms stock trades at a reasonable forward (one-year) earnings multiple of 21, which is very attractive for this dominant business."
Meta Platforms reaches more than 3.5 billion daily users across Facebook, Instagram, WhatsApp, and Threads, creating a vast advertising audience. Revenue rose 26% year over year in the third quarter as AI improved ad targeting and content recommendations. The company is investing in AI infrastructure and expanding revenue channels through products like the Meta AI personal assistant (over 1 billion regular users) and Ray-Ban Meta smart glasses. Analysts forecast about 15% annualized earnings growth, and sustained mid-teens growth could potentially quadruple the stock by 2035. The stock trades at a forward one-year earnings multiple of 21.
Read at The Motley Fool
Unable to calculate read time
Collection
[
|
...
]