Going Into Earnings, Is Meta Stock a Buy, a Sell, or Fairly Valued?
Briefly

Meta Platforms is set to release its second-quarter earnings report on July 30. The focus will be on evidence of how artificial intelligence investments are benefiting their DigAds business, particularly with the Advantage+ tool enhancing ad-buying efficiency and return on ad spend. Enhanced monetization is anticipated as advertisers seek measurable results amidst a tight macro environment. Investments in AI talent have raised concerns but are deemed essential for managing future AI spending, with investor reactions closely tied to the performance of Meta's core advertising revenue.
Meta's AI investments are enhancing its DigAds business by increasing time spent and monetization, with the Advantage+ tool automating ad-buying for better ROAS.
Recent investments in AI talent, involving tens of millions, are crucial for operationalizing AI spending, which could explain the stock's resilience despite high costs.
Read at www.morningstar.com
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