Can Muse Spark Supercharge Meta Platforms (META)’s Ad Business?

Meta Platforms, Inc. (NASDAQ:META) is one of billionaire David Abrams’ best stock picks. Meta Platforms, Inc. (NASDAQ:META) is also a Wall Street favorite. The stock carries a consensus Strong Buy rating with a price target of $847.70, which suggests around 35% upside potential.

Can Muse Spark Supercharge Meta Platforms Inc (META)’s Ad Business?

On April 9, Piper Sandler reaffirmed its Overweight rating on Meta Platforms Inc (NASDAQ:META) with a price target of $880. The firm restated its bullish view on Meta Platforms after the company launched its Muse Spark AI model. Muse Spark was released on April 8.

Meta has lagged behind the likes of OpenAI, Anthropic, and Google in the AI models space. So Piper Sandler sees the release of Muse Spark as a substantive progress in Meta’s efforts to offer a competitive product.

According to a New York Times report on April 8, Muse Spark performed far much better than Meta’s previous AI models in writing and reasoning tests. The report further said that Muse Spark was nearly as good as leading rival models from OpenAI, Google, and Anthropic.

While Meta may be late to the AI models game, Citizens analyst Andrew Boone said the company has a clear advantage given its massive social media user base. More than 3 billion people use Meta’s portfolio of social media platforms, including Facebook and WhatsApp. Boone sees Muse Spark expanding Meta’s opportunity in the advertising business.

Meta gets 98% of its revenue from advertising. Morningstar analyst Malik Ahmed Khan noted in an interview with CNBC that AI tools could bolster Meta’s ad business if they improve engagement and targeting.

Meta Platforms Inc (NASDAQ:META) is an American tech company that operates a portfolio of social media platforms. In addition to its flagship platform Facebook, Meta also owns Instagram and WhatsApp. Meta platforms reach billions of users globally.

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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