Wall Street may have been caught off guard by DeepSeek's AI launch, but Meta's CTO says he wasn't. Andrew Bosworth said that it was "very predictable" and he wrote an email anticipating such a development 6 months ago.
Does Meta Platforms (META) have what it takes to be a top stock pick for momentum investors? Let's find out.
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Artificial intelligence (AI) investing experienced a shakeup when DeepSeek announced that its R1 model was trained for just $5.6 million. However, that doesn't include hardware costs or any pre-training that was done.
Meta Platforms (META 1.20%) is at the forefront of innovation in artificial intelligence (AI). Led by CEO Mark Zuckerberg, it made significant investments in the AI space, and he believes that 2025 could be a year for several massive breakthroughs.
The company's comeback in 2023 was fantastic, and in 2024 it maintained the bull run. The ad business is thriving, with prices up 14% per ad, showing that demand isn't slowing down, even with privacy restrictions tightening. The company believes AI is the future, and Meta wants a front-row seat. But to do so aggressively, the company is also inclined to use Debt, the debt-to-assets ratio from 12.1% to 15.8%.
A new quarterly earnings season is underway in corporate America. Hundreds of companies will report their latest financial results over the next few weeks, but investors are particularly focused on the trillion-dollar tech giants leading the artificial intelligence (AI) revolution.
DeepSeek's success represents a victory for open-source artificial intelligence models such as Meta's Llama, industry experts told CNBC. Seena Rejal, chief commercial officer of AI startup NetMind, told CNBC DeepSeek shows that open-source AI is "no longer just a non commercial research initiative but a viable, scalable alternative to closed models" like OpenAI's GPT.
Meta Platforms has shown impressive growth, with a 33% increase in stock value and strong quarterly and full-year financial results, including a 50.5% YoY EPS growth. Despite the positive performance, I maintain a "Hold" rating due to the stock's high valuation multiple of 30, making it not a bargain. Meta's revenue growth is driven by increased ad prices and impressions, but future growth will require new revenue streams like Threads and AI glasses.
Shadi Nayyer has joined Meta in a new role focused on metaverse creator and developer relationships. Nayyer's role overseeing ecosystem growth rolls up into the Reality Labs content organization.
Meta CEO Mark Zuckerberg has pledged to make artificial general intelligence (AGI) — which is roughly defined as AI that can accomplish any task a human can — openly available one day. But in a new policy document, Meta suggests that there are certain scenarios in which it may not release a highly capable AI system it developed internally.