From Nasdaq: 2025-04-20 08:20:00

Meta Platforms (NASDAQ: META) unveils new AI models based on Llama 4, enhancing user engagement and boosting ad impressions by 6% and average ad prices by 14%. Revenue grows by 21% in Q4, driven by strong advertiser utilization of Llama for campaigns and audience targeting improvements.

Despite initial doubts, Meta’s revenue growth accelerated in 2023, with Q4 revenue increasing by 25%. Chinese advertisers played a significant role, increasing their spending on Meta’s platform. However, recent drops in ad spending due to the U.S.-China trade war pose a risk to Meta’s revenue growth.

Meta introduces three new AI models based on Llama 4, including Maverick, Scout, and Behemoth, aimed at improving user experience and efficiency. These models, trained on text, image, and video data, utilize a mixture of experts architecture for enhanced performance and capabilities.

Despite short-term risks related to Chinese advertisers and the trade war, Meta remains a strong digital marketing platform with promising AI advancements. Trading at an attractively valued forward P/E ratio of 20.5, Meta’s long-term growth potential through AI innovation and strategic investments positions it as a solid investment opportunity.

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Read more at Nasdaq: Meta Stock Faces This Big Risk, Despite AI Ambitions