Sunday, 28 May 2023

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Why Meta Platforms Stock (NASDAQ:META) Can Easily Extend Its Blistering Rally – TipRanks Financial Blog

Why Meta Platforms Stock (NASDAQ:META) Can Easily Extend Its Blistering Rally – TipRanks Financial Blog

Meta Platforms (NASDAQ:META) stock has been an unbelievable performer since bottoming out late last year, now up around 185%+ from its November lows. Though Meta’s hot run has been the envy of its FAANG peers, there are still catalysts that could help extend the rally, potentially all the way to all-time highs.

Undoubtedly, artificial intelligence (AI) and Zuckerberg’s “year of efficiency” have been responsible for a huge chunk of the relief rally. Looking forward, I’d look to the Metaverse as the fuel that helps the stock move higher from here. Recession or not, the next few months could be exhilarating for Meta as investors pile back into a name that was severely oversold last autumn. As such, I’m staying bullish on the stock.

Meta is Harnessing the Power of AI

With the power of AI, Meta may be able to increase the value of its ads without having to track users across the internet. The company’s Advantage+ suite of automation tools could change the landscape of the advertising world once again.

The suite leverages AI to create multiple ad variations to help advertisers find the one that best sticks with any user. Only time will tell how Advantage+ and other AI offerings help jolt Meta’s growth. Regardless, it’s hard not to be impressed by Meta’s ability to innovate through trying times.

Indeed, Apple’s privacy-focused iOS updates, which initially cost Meta dearly, may be to thank for pushing Meta to innovate its way out of a mess.

Meta is also getting into the hardware game, with recent news of the firm’s plans to develop custom chips tailored for AI. Indeed, many big software companies have been hopping on the hardware bandwagon lately. Meta seeks to launch a new AI chip called the MTIA (Meta Training and Inference Accelerator) in 2025.

Undoubtedly, Meta’s AI roadmap is impressive. The monetization possibilities seem tough to fathom at this juncture. Regardless, I still think many may be discounting the potential for AI to re-accelerate growth over the longer term. Meta isn’t just a social media or metaverse company anymore; it’s a serious AI contender.

June Could be a Big Month for the Metaverse

Many investors may have dismissed the Metaverse in favor of AI as the trend to bet on over the past six months. Looking ahead, the Metaverse may be due for a bit of a comeback. Many people that expect Apple (NASDAQ:AAPL) will unveil its mixed-reality headset at some point during its WWDC…

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