"Artificial intelligence (AI) is fueling an acceleration in the company's revenue growth by boosting engagement on its Facebook and Instagram social networks, which could create significant value for investors from here. Meta's market capitalization is $1.7 trillion as I write this, so investors who buy its stock today could earn a strong return of 76% if it does join the $3 trillion club."
"More than 3.5 billion people use at least one of Meta's social media apps every single day, which is approaching half the population of the entire world. It will be increasingly difficult for the company to continue attracting new sign-ups, so it's focusing on engagement instead. The longer users are online each day, the more ads they see, and the more money Meta makes."
"The company has embedded AI into its recommendation algorithms on Facebook and Instagram to learn what type of content each user likes, so it can give the individual more of it. This strategy resulted in a 5% increase in the average amount of time each user spent on Facebook during the third quarter of 2025 (ended Sept. 30), and a 10% increase on Threads, which is Meta's X (formerly Twitter) competitor."
"On Instagram, AI-powered recommendations drove a 30% increase in the amount of time users spent watching videos, which bodes well for the platform in the battle against its fierce rival TikTok. The company is also using AI to create entirely new features across its social networks, like the Meta AI chatbot. It already has over 1 billion monthly active users after launching it just two years ago,"
Meta Platforms is growing revenue faster than almost every other Magnificent Seven company while trading as the cheapest among them. Artificial intelligence is increasing user engagement on Facebook, Instagram, and Threads by personalizing recommendations and adding new features. Daily reach exceeds 3.5 billion people, shifting the growth focus from new sign-ups to time spent and ad impressions. AI-driven recommendations produced double-digit engagement gains on Threads and a 30% video watch-time increase on Instagram, plus a 5% Facebook time increase in Q3 2025. The Meta AI chatbot surpassed 1 billion monthly active users within two years. Market cap sits at $1.7 trillion, implying significant upside if valuation reaches $3 trillion.
Read at The Motley Fool
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