Meta Stock Surges 3% on AI-Ad Revenues and VR Expansion Momentum

GuruFocus.com
03 Dec 2024

Meta Platforms Inc. (META, Financial) saw a 3% stock surge on December 2, 2024, largely driven by strong momentum in its artificial intelligence (AI)-driven advertising initiatives and partnerships. Analysts say that Meta has been keen on generative AI technological development that has improved ad targeting effectiveness and advertiser interest. This has been complemented knocked and a broader adoption of AI tools, creating anticipation of continuous growth in its ad revenues in upcoming quarters.

  • Warning! GuruFocus has detected 4 Warning Sign with META.

The company also continues to invest in Reality Labs, which is committed to virtual and augmented reality (VR/AR). Nonetheless, the financial demands related to these efforts are significant, and despite that, Meta relies on the division as one of the long-term initiatives. Consultants are bullish about experiential technologies' prospects in creating new revenue sources.

Also, investors wanted Meta to maintain its consistent revenue growth, estimated to be 14.7% in 2025, after this year's 23.3%. For instance, this year, a 55% growth of the EPS is evident, making the company's profitability strong enough. All these factors sum up Meta's changes as a steward of AI and the digital advertising industry.

This article first appeared on GuruFocus.

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