Analyst Says He’s Buying Meta Platforms (META) Amid AI Monetization – ‘Margins Are Just Going Higher’

Meta Platforms, Inc. (NASDAQ:META) is one of the Top 10 Stocks Wall Street is Buzzing About These Days.

Kevin Simpson, Capital Wealth Planning founder and CIO, explained in a recent program on CNBC why he’s buying Meta Platforms Inc (NASDAQ:META) shares. The analyst highlighted the social media giant’s AI catalysts:

“It was our top pick coming into the year. It remains that way. Time will tell from an AI standpoint, but don’t forget the hardware. Don’t forget what they’re doing with advertising, how they’re monetizing AI in advertising specifically. Margins are just going higher. I think the numbers are going to be fantastic.”

Meta Platforms (NASDAQ:META) is driving usage and ads revenue by improving its algorithms and user experience thanks to AI. Meta Platforms (NASDAQ:META)’s advancements in Reels and WhatsApp are helping manage CapEx growth as the company strives to stay competitive in AI. Meta Platforms (NASDAQ:META)’s substantial user base of 3.3 billion provides a data and distribution edge that could capture a significant share of the GenAI market.

Meta Platforms can see huge progress related to AI as CEO Zuckerberg is aggressively spending on the technology and hiring top talent to achieve breakthroughs via the Superintelligence Labs team. He recently said his company plans to invest hundreds of billions of dollars in AI infrastructure. The company plans to build a massive 1+ gigawatt supercluster by next year. Mark Zuckerberg’s commitment to AI could make it a key focus in the upcoming earnings call and potentially act as a major catalyst for the stock.

Photo by Kaleidico on Unsplash

Wedgewood Partners stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its second quarter 2025 investor letter:

“Meta Platforms, Inc. (NASDAQ:META) was once again a leading contributor to performance for the quarter – and our best portfolio performer since the panic-selling lows in the stock back in September of 2022. Revenue grew +16% despite ad-spending headwinds related to trade protectionism, and operating margins expanded thanks to continued investments in automation, driving a stellar +37% growth in earnings per share. The Company has been a consistent beneficiary of artificial intelligence (AI) over the past several years, investing aggressively in deep learning recommendation systems that help power it’s products which reach nearly half the population of the planet. Meta’s AI investments, combined with its massive scale, allow the Company to quickly spin up new products across its digital advertising real estate to reinforce its competitive positioning. Meta’s core Family of Apps products are backed by extremely large and complex (i.e. difficult to copy) AI recommendation systems that have to sort through billions of datapoints in real time and come up with the probability of a user clicking on something. Meta is one of the few companies that has been able to consistently and, most critically, profitably monetize AI technologies for shareholders, and we continue to hold the stock as a top position in portfolios.”

While we acknowledge the risk and potential of META as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than META and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.