"Meta Platforms is using artificial intelligence to strengthen its advertising business, and its Orion augmented reality glasses could be the next big consumer electronics product. Interest in artificial intelligence went parabolic following the release of ChatGPT in late 2022. Since then, Nvidia stock has advanced 1,090% to a market value of $4.2 trillion. And Palantir Technologies stock has climbed 2,340% to a market value of $370 billion."
"I predict Meta Platforms will surpass that figure in no more than five years (i.e., before the end of 2030). The company is currently worth $1.9 trillion, which means its share price must increase by about 247% for its market value to reach $4.7 trillion. Here's why I think that could happen. Meta Platforms is a digital advertising giant with deep AI expertise Meta Platforms owns three of the four most popular social media platforms as measured by monthly active users."
"Meta has already made strides in boosting engagement with artificial intelligence (AI). CEO Mark Zuckerberg told analysts on the second-quarter earnings call, "Advancements in our recommendation systems have improved quality so much that it has led to a 5% increase in time spent on Facebook and 6% on Instagram." He also said that advertising conversion rates increased across both social media platforms, meaning more clicks and purchases."
Meta Platforms is positioned to exceed a $4.7 trillion market valuation by 2030 given its AI-enhanced advertising, massive user-data scale, and emerging Orion augmented-reality glasses. The company currently values at $1.9 trillion and would require roughly a 247% share-price increase to reach $4.7 trillion. Meta owns three of the four largest social platforms, enabling substantial consumer-data collection that improves ad targeting and conversion. AI-driven recommendation improvements increased time spent on Facebook by 5% and Instagram by 6%. Meta plans heavy investment in AI infrastructure and aims to automate ad creation, while Orion glasses represent a major new consumer-electronics opportunity.
Read at The Motley Fool
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