Is Meta Platforms an Underrated Artificial Intelligence Stock?
From Nasdaq: 2025-03-28 09:00:00
Meta Platforms (NASDAQ: META) is exploring new growth opportunities in artificial intelligence (AI) with the launch of its stand-alone AI app, Meta AI. This move could potentially unlock a new revenue stream for the company and expand its user base beyond its existing apps like Facebook and Instagram.
Despite Meta’s strong financials and aggressive spending on AI, there are concerns about whether the company can effectively compete in the AI space. With other popular chatbots already in the market, Meta may need to invest heavily to win over users who are not already using its apps. The success of Meta AI remains uncertain.
Investors should carefully consider Meta Platforms’ potential in AI before investing, as heavy spending on AI initiatives could impact long-term profit growth. While the stock is not overly expensive, the company’s track record of pursuing trends like the metaverse raises questions about the success of its AI endeavors.
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Randi Zuckerberg, former director of market development at Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is associated with The Motley Fool. The Motley Fool recommends Meta Platforms and has a disclosure policy.
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