Meta’s Long-Term AI Vision Gains Support — But EU Rules and Competition Loom

Meta Platforms, Inc. (NASDAQ:META) is one of the Top 10 AI Stocks in the SpotlightOn July 3, Citizens JMP analyst Andrew Boone reiterated a “Market Outperform” rating on the stock with a $750.00 price target.

According to the firm’s analysis, Instagram continues to dominate among young adults. Among the firm’s interns, it leads in both user penetration and time spent. The firm is of the belief that Instagram will help build Meta’s next generation of users, reinforcing its long-term sustainability.

In other news, Needham & Company upgraded Meta from ‘Sell’ to ‘Hold,’ amid concerns regarding capital allocation and structural cost disadvantages compared to rivals.

Meta’s Long-Term AI Vision Gains Support — But EU Rules and Competition Loom

It is indeed true that Meta is making significant strides in artificial intelligence, particularly with its recent investment in Scale AI and the recruitments from OpenAI. However, the tech giant has its fair share of challenges.

Mounting pressure from the European Union’s AI legislation and competition for talent from Chinese startup DeepSeek are two such challenges to name. Moreover, its Reality Labs division continues to suffer significant losses.

As such, while the firm is optimistic about Meta’s long-term potential, the costs and regulatory risks suggest a cautionary stance toward the tech giant.

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.