"In about two decades, the business has catapulted to a gargantuan market cap of $1.6 trillion. It successfully rode the wave of rapid smartphone and internet adoption. Meta can be a polarizing company at times. However, its shares have worked out well, soaring 462% in the past three years (as of Dec. 12), even though they trade 18% below their record from August. Should you buy the dip in this social media stock before 2026?"
"The company's key revenue driver is digital advertising, bringing in $50 billion in revenue in Q3, up 26% year over year. It makes sense that Meta would leverage AI innovations to bolster this part of the business. It's using AI to improve feed algorithms and personalize content recommendations, supporting higher user engagement. And the company is launching AI features for its advertising to better target these users and boost return on spend."
Meta Platforms reached a $1.6 trillion market capitalization after roughly two decades of growth driven by smartphone and internet adoption. Shares rose about 462% over three years but remained roughly 18% below an August record. Artificial intelligence is the company's top strategic priority, with planned capital expenditures around $71 billion this year, mostly for AI infrastructure and with higher spending expected by 2026. Digital advertising generated $50 billion in Q3, up 26% year over year, with ad impressions up 14% and price per ad up 10%. AI enhancements target feed algorithms, personalization, and ad targeting to boost engagement and ad ROI, while heavy spending raises questions about long-term returns.
Read at The Motley Fool
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