Meta platforms (NASDAQ: META ) The artificial intelligence (AI) boom has been one of the most promising stories to date. You may know the company best for its social media apps — Facebook, Messenger, Instagram, and WhatsApp — but Meta is also very present in the world of AI. The company has big AI ambitions and has invested heavily in the area.
But, in recent weeks, along with other technical players, Meta stock has declined. This comes as investors grapple with a range of concerns, from geopolitics to industry specific. What weighs heavily on Meta are industry-related concerns, with the view that AI’s revenue opportunity may not match the levels of spending we’ve seen.
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Still, Meta is reporting strong revenue growth, and the general message from the AI community is that demand continues to rise. With that in mind, can Meta Stock reach $800? Let’s find out.
As mentioned, Meta is a social media giant, and today it’s what drives the company’s billion-dollar revenue. Advertisers come to Meta to reach us across these apps, and that delivers double-digit revenue growth — and higher profitability. In fact, Meta has built up such financial strength that it can pay shareholders dividends and invest heavily in its AI development.
Meta sees its role in AI as “creating personal intelligence.” Throughout these apps, the meta goal is to deliver content and services that are personalized to the user, and this should result in us spending more time on these apps. As a social media leader, Metta is well positioned to perform such a task. At the same time, Meta is working to automate the advertising process and make ads increasingly profitable for those who place them.
The company’s AI research and development should also help create new products and services over time that may expand its revenue opportunities. So there’s reason to be optimistic about Meta’s AI journey — and its strong and proven social media business, too.
Now let’s consider the path to $800. The stock is trading for about $660 right now, so that would mean a 21% gain, and it would bring the market value to $1.7 trillion — up from $1.6 trillion right now. So mathematically, it works and can easily happen.
