"Meta has been using AI to improve its recommendation algorithm to keep users on its sites longer, which is leading to more opportunities to serve ads. At the same time, the company has developed a generative ads recommendation model (GEM) that can bring together a user's engagement across Meta's platforms to deliver more personalized ads. Meanwhile, it has started using sequence learning, which takes into account the order of users' interactions to help recognize a high intent to purchase."
"That said, its stock underperformance had nothing to do with its operational performance throughout the year. The company grew its revenue by a robust 22% in 2025 to $201 million, with its Q4 revenue growth even stronger, coming in at 24%. Meanwhile, Meta sees no sign of its growth slowing down, with the company forecasting its revenue growth will accelerate in Q1 to between 26% to 34%."
Meta experienced stock underperformance in 2025 despite strong operational results and significant revenue growth. Revenue increased 22% in 2025 to $201 million, with Q4 growth at 24% and a Q1 revenue growth forecast of 26% to 34%. AI enhancements power ad revenue gains by improving recommendations and personalization through a generative ads recommendation model (GEM) and sequence learning that detects high purchase intent. These AI initiatives increase both ad impressions and pricing, driving revenue growth. Meta has begun introducing ads to its WhatsApp messaging platform and to its new social media site, expanding monetization channels.
Read at The Motley Fool
Unable to calculate read time
Collection
[
|
...
]