"When most investors talk about artificial intelligence ( AI) stocks, they focus on chipmakers like Nvidia or cloud giants like Microsoft. However, plenty of other leading tech companies are using AI to improve their businesses. One of those AI-oriented players is Meta Platforms , the world's largest social networking company. It uses AI algorithms to gather data from its family of apps -- including Facebook, Instagram, Messenger, and WhatsApp -- to craft targeted ads."
"It also uses AI to display customized content that will likely keep its users engaged for longer periods of time. Yet Meta isn't often mentioned in the same breath as Nvidia, Microsoft, and other AI leaders. Instead, Meta's plans to ramp up its AI spending caused its stock to pull back sharply after its third-quarter earnings report came out on Oct. 29. Here's a look at why the bulls retreated --"
Meta leverages AI across Facebook, Instagram, Messenger, and WhatsApp to craft targeted ads and personalize content that increases user engagement. The company served an average of 3.54 billion daily active people in September, up from 2.82 billion in December 2021, creating a vast audience attractive to advertisers. Meta and Google hold a near-duopoly in digital advertising in many markets, with most revenue from targeted ads. Apple’s 2022 iOS privacy changes, competition from TikTok, and elevated Reality Labs spending pressured ad sales and operating margins, prompting heightened AI investment that affected investor sentiment.
Read at The Motley Fool
Unable to calculate read time
Collection
[
|
...
]