10 AI Stocks in the Spotlight Right Now

3. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Investors: 273

Meta Platforms, Inc. (NASDAQ:META) is one of 10 AI Stocks in the Spotlight Right Now. On July 22, Stifel analyst Mark Kelley raised the price target on the stock to $845.00 from $655 while maintaining a Buy rating. The rating comes as part of the firm’s digital ads group Q2 earnings preview.

According to the firm, April was slow initially but improved, with June likely being the best month within the quarter. The firm prefers long positions in Meta and Trade Desk among the group.

Particularly for Meta, the firm stated that it anticipates upside to second-quarter figures and slightly better guidance. Early feedback on WhatsApp monetization efforts has been noted to be positive.

Moreover, this new revenue stream is likely to be incremental to Meta budgets rather than taking it away from Facebook and Instagram advertising. The research note also highlighted how some market participants are expecting a fourth-quarter ramp in WhatsApp monetization.

A potential wildcard for the company is its capital expenditure. This is especially true in light of the company’s intra-quarter commentary about artificial intelligence hiring initiatives.