Meta Platforms' META shares have risen 47% YTD due to strong AI strategy and growth initiatives.

From Nasdaq: 2024-09-02 11:35:00

Meta Platforms’ META shares have surged 47.3% YTD, outperforming the industry and sector. The company’s AI strategy across Facebook, Instagram, WhatsApp, and Messenger reaches 3.2 billion users daily, with recent initiatives focusing on nurturing creators and expanding web features. META is now advancing its AI initiatives globally, with Meta AI expanding into new languages and countries.

AI data centers’ power consumption is a concern for Meta Platforms and other tech giants, with estimated $1 trillion spending on AI-related data center upgrades. META plans to spend $37-$40 billion in 2024, focusing on geothermal energy expansion. A partnership with Sage Geosystems aims to produce 150 megawatts of emission-free power for data centers by 2027.

Meta Platforms’ revenue increased by 22% due to enhanced user engagement driven by AI-recommended content. Instagram and Reels are major revenue sources, with AI recommending 40% of Instagram content. META aims to tap Messenger and WhatsApp for the payments market, banking on AI and metaverse plans for long-term success amidst regulatory and competitive challenges.



Read more at Nasdaq: META Shares Rise 47% YTD: Can AI Focus Further Drive the Stock?