Donald Trump's return to the White House is set to reshape the artificial intelligence industry, according to research from Deutsche Bank, whose analysts outlined five major shifts in approach that could impact both businesses and national security. Diverging sharply from the Biden administration's policies, the president-elect's relationships with tech leaders such as Elon Musk, a vocal supporter and financial backer of his campaign, could give Silicon Valley a direct influence on policy.
Meta Platforms beat Q3 EPS by $0.73 and revenue by $159.52M; daily users hit 3.29B (+5% YoY). Yet, its enterprise value is too high, with a -20.5% margin of safety. 2024 projected revenue is $163.12B; EBITDA margin likely to expand to 55% by 2034. Reality Labs lost $4.4B in Q3, a division that could present long-term risks. Using a 10-year 12% revenue CAGR and a terminal EV/EBITDA multiple of 12.3, META's intrinsic enterprise value is estimated to be $1.17 trillion vs. the current $1.47 trillion.
AI's investor potential goes far beyond the chip giant.
The growing adoption of AI in the digital ad market should help this social media giant deliver robust earnings growth and stock upside over the next three years.
Meta Platforms is nearing a point similar to where its big tech peers last split their stocks.
A federal judge said Meta Platforms CEO Mark Zuckerberg is not personally liable in 25 lawsuits accusing his company of addicting children to social media.
Meta Platforms (NASDAQ:META) recently reached a record $1.5 trillion market value, seeing the value of its shares rise 66% in 2024 and 387% since early 2023.
Meta Platforms is spending a ton of money to pursue generative AI.
A professor sued pre-emptively to release software that would let users automatically unfollow everyone in their Facebook feed.
Meta stock has sold off after earnings guidance indicated higher CapEx ahead in 2025, though this reaction may have been unwarranted given the incredible ROI from AI investments so far. Investors may be overlooking how the company's genius open-source strategy is already paying off in the background with valuable third-party developer contributions conceivably buoying its social commerce and advertising potency. Looking beyond the Forward PE multiple, another more comprehensive valuation metric uncovers just how cheap Meta shares are relative to the other Magnificent 7 stocks.
Facebook bought WhatsApp a decade ago for $22 billion. WhatsApp is finally starting to look like a real business for parent company Meta.
Meta has proven its earnings strength over time.