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Meta is pouring significant resources into AI-focused investments.
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The firm is already utilizing AI to enhance user engagement and optimize advertising strategies.
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With a reasonable starting valuation and healthy earnings growth, the stock has strong potential to rise.
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10 stocks we like better than Meta Platforms.
Investors who got in on Meta Platform (NASDAQ: Meta) since its IPO in 2012 have seen returns of 1,520%, as of mid-January. This performance easily outstrips the S&P 500 index.
Meta has transitioned from being a startup to a tech giant with a market cap of about $1.6 trillion. Can it continue this trajectory? The “Magnificent Seven” might play a role in bolstering your investment returns, if you’re looking to reach a comfortable retirement.
Meta isn’t holding back when it comes to AI investments. It’s set aside $39 billion for capital investments, with the 2024 capital spending anticipated to hit $71 billion. CFO Susan Lee mentioned that spending rates will likely outpace last year’s in 2026. This shows strong confidence in AI’s potential from CEO Mark Zuckerberg.
There aren’t many companies in a better position than Meta right now. They claim 3.54 billion daily users across platforms like Facebook, Instagram, WhatsApp, Messenger, and Threads, affording them unmatched global influence.
In terms of profitability, Meta reported $37.7 billion in net income from $141.1 billion in revenue for the first nine months of 2025. This represents a substantial influx of free cash, allowing for significant AI-related investments. Obviously, investors are interested in ensuring good returns on these investments, which doesn’t have a straightforward answer yet.
However, currently, Meta seems to be thriving in the AI landscape, noting in their Q3 2025 earnings call that AI is driving app engagement.
Advertising is another crucial factor for Meta to consider. They brought in $50 billion from advertising revenue in Q3, making up 98% of their total income. The company’s Advantage+ AI tools have been beneficial in reducing costs for advertisers.
Zuckerberg has mentioned that improving AI advertising capabilities could increase advertising’s share in global GDP. Though this assertion is bold, it seems like he recognizes a significant opportunity. I think it’s worth paying attention to.
