This Is the Impact of AI on Meta Platforms (META) Core Advertising Business

Meta Platforms Inc. (NASDAQ:META) is one of the top S&P 500 stocks by index weight. On April 16, Deutsche Bank touted Meta Platforms Inc. (NASDAQ:META) artificial intelligence investments aimed at enhancing the core advertising business. Consequently, the research firm reiterated a Buy rating and a $920 price target.

This is the Impact of AI On Meta Platforms, Inc. (META) Core Advertising Business

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The positive stance comes against the backdrop of advertising spend growth on Meta Platforms reaching 6% in the first quarter, exceeding the 5.5% expected. The increase was primarily driven by strong returns on investment from the company’s Advantage+ product suite. The growth is expected to continue in the second quarter, with Inventus Media predicting 6.4% year-over-year growth.

Amid the heightened ad spend, Deutsche Bank believes investors expect Meta Platforms to deliver first-quarter revenue of $57 billion. In the second quarter, revenue is expected to range between $60.5 billion and $61 billion, representing 27% to 28% year-over-year growth.

Meta Platforms, Inc. (NASDAQ:META) builds technologies that help people connect, find communities, and grow businesses through social media apps (Facebook, Instagram, WhatsApp, Messenger) and immersive technologies. The company is heavily focused on developing AI and mixed reality (VR/AR) experiences, as well as hardware such as Meta Quest headsets and Ray-Ban Meta smart glasses.

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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