"Meta Platforms has built an advertising empire atop its portfolio of industry-leading social media networks. Its growth strategy is heavily concentrated on artificial intelligence. The company has designed machine learning models that personalize content and advertising, and it has developed custom AI chips to power those models."
"In a recent note to clients, Brian Nowak at Morgan Stanley wrote, 'We think Meta's runway to further improve engagement and monetization is long as it better analyzes its data and improves its recommendation engines with a growing suite of data, tools, and products.'"
"Users are spending more time on its social media platforms, and ad performance is improving. In turn, ad impressions rose 12% last year, and the average price per ad rose 9%."
The Nasdaq Composite entered correction territory on March 26, closing over 10% below its record high. Historically, such corrections have been buying opportunities. Analysts view Meta Platforms and Broadcom as undervalued, with potential upside of 50% and 52%, respectively. Meta has focused on AI, enhancing user engagement and ad performance. Despite concerns over AI spending, results show increased user time and ad impressions. Analysts believe Meta's AI could significantly boost commerce and advertising revenue, leveraging data from billions of users and businesses.
Read at The Motley Fool
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