From Barchart: 2024-04-27 16:02:00

Despite Meta Platforms (NASDAQ: META) strong first-quarter earnings, analysts were discouraged by the company’s plans to increase spending, especially focusing on artificial intelligence (AI) potential. Shares dropped 17% after earnings, creating an opportunity for investors. CEO Mark Zuckerberg believes Meta can be the leading AI company globally, with ambitions for significant growth. This could add to the stock’s upside potential.

Investors have a second chance to buy Meta stock at a fair price. Despite the increase in operating expenses and capital expenditures, the core earnings results were strong. With ad sales growing 27% and an expecting revenue climb of 18%, Meta’s business outlook remains positive. Earnings per share are expected to continue rising at a solid pace. At just over 20 times analysts’ estimates for 2025 earnings, Meta stock is considered a good value.

Meta’s AI ambitions are integral to its app offerings. AI powers features like recommended content, ads placements, and ad creation tools. The company is investing heavily in AI growth, with plans for chatbots, paid content within AI interactions, and more. While these ambitions may take years to fully materialize, Meta’s current AI efforts have been successful, showing potential for future growth and profitability.



Read more at Barchart: A Second-Chance Opportunity: 1 Artificial Intelligence (AI) Growth Stock Down 17% to Buy Now