📞 Meta's big AI bets

and how it's looking

Future Download

A.I., Crypto & Tech Stocks

Meta's Playing Big: The Future is AI

During his keynote at Meta’s Connect event in September 2024, Mark Zuckerberg sported a shirt emblazoned with “Aut Zuck Aut Nihil,” a twist on the Latin phrase “Aut Caesar Aut Nihil,” meaning "All or nothing." This slogan encapsulated Meta’s aggressive commitment to artificial intelligence (AI), a strategy that the company has embraced fully, even as it made bold financial moves to fund its ambitious AI plans.

Meta’s AI Investment Surge

In April 2024, Meta announced plans to increase its AI spending by up to $10 billion as it aims to build out AI infrastructure and go big. The decision wasn’t taken lightly by investors as it caused the stock to plunge by as much as 19%. However, investors have since warmed to the idea, with Meta’s stock reaching a record high in December, showing a 70% increase for the year.

Zuckerberg explained the rationale behind the investment, emphasizing AI’s role in rejuvenating Meta’s online advertising business, particularly after the impact of Apple’s iOS privacy changes in 2021.

AI is also fundamental to Meta’s future projects, such as Ray-Ban smart glasses and the Orion augmented reality headset, which Zuckerberg views as potentially pivotal for the next computing era.

Meta's Ray-Ban smart glasses have been a big success, selling over a million and becoming the most successful display-less smart glasses to date. The smart glasses market is expected to grow, with the AR and VR smart glasses market valued at around $16.6 billion in 2023 and expected to expand to around $47.9 billion by 2032.

On the other hand, Meta's Orion augmented reality (AR) glasses are still in development. Still, the company is ruling the industy. In the third quarter of 2024, Meta dominated the AR/VR headset market with a 70.8% share. This was driven by the success of the Meta Quest 3. The AR glasses and headset market was valued at $6.3 billion in 2024, and is projected to rise to over $8.5 billion in 2025.

This shows that there is great potential and Meta is playing the right bets.

Meta’s Growing AI Presence

Meta has been rapidly deploying its AI initiatives across its platforms. Zuckerberg stated that Meta AI, the company's flagship digital assistant, could become "the most used AI assistant in the world" by the end of 2024.

This chatbot represents Meta’s main vehicle for introducing generative AI to its vast user base. Meta’s strategic focus on AI has drawn attention from analysts, with firms like Jefferies and Truist Securities predicting the company will thrive as a generative AI leader, thanks to its massive user base and the potential for AI-driven advertising tools.

Expanding the Meta AI Ecosystem

By December, Meta AI had reached nearly 600 million monthly active users, with its chatbot integrated across Meta’s entire platform, including Instagram, Facebook, WhatsApp, and Messenger.

Despite this success, the company lacks a standalone app for Meta AI, making it difficult to compare its usage directly with competitors like ChatGPT or Google Gemini. Nonetheless, Meta’s deep integration of AI into its existing platforms has positioned it as a significant player in the AI space.

In India, Meta AI has found a receptive audience, with the country emerging as the largest market for Meta AI’s usage. Users have adopted Meta AI, particularly through WhatsApp, for tasks such as music research and learning about industry figures. However, not all feedback has been positive; some users find the AI-driven search suggestions in WhatsApp to be intrusive.

Meta’s Advertising Revolution

While Meta’s AI tools are positioned as a major step forward for the company, advertising remains its core revenue driver. Over a million advertisers have leveraged Meta’s generative AI tools to create millions of ads, with image generation features leading to a reported 7% increase in conversions.

For small businesses, these tools offer a way to refine ad copy, resize images, and reposition content, making ads more effective. Despite some complaints about Meta’s ad interface, the integration of AI into advertising is a key strategy for keeping Meta competitive in the digital advertising market.

The Enterprise Play: A New Chapter for Meta?

Meta’s recent hire of Clara Shih, former Salesforce AI CEO, signals an ambition to expand its enterprise offerings, particularly through its Llama family of AI models.

This could help businesses drive efficiencies and improve customer experiences, potentially leading to new revenue streams. Meta’s failure in the past to establish a strong enterprise software presence has been noted, but analysts see the company’s growing focus on business solutions, particularly around WhatsApp, as a way forward.

WhatsApp could become central to Meta’s enterprise push, especially by enabling businesses to create AI-powered customer service chatbots. According to analysts, this could evolve into a multi-billion-dollar industry in the coming years, positioning Meta as a leader in the burgeoning field of AI-driven customer service solutions.

Looking Ahead: The Future of Meta and AI

Meta’s AI ambitions, though costly, have started to show promise, with the company well-positioned to capitalize on its expansive user base and the growing demand for AI tools in both consumer and business contexts.

As Meta continues to integrate AI across its platforms and refine its advertising offerings, it could see substantial returns on its investment in the coming years. The next few years may well determine whether Meta’s bold AI bet pays off in a significant way, shaping the company’s future in the process.

The stock is expected to give great returns in 2025 and can be an excellent AI bet.

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