Meta Platforms released the biggest version of its mostly free Llama 3 artificial intelligence models on Tuesday, boasting multilingual skills and general performance metrics that nip at the heels of paid models from rivals like OpenAI.
Meta has been given until September 1 to respond to consumer protection concerns in the European Union.
Meta Platform's current market cap is $1.2 trillion, meaning its stock would need to grow roughly 67% to reach $2 trillion. The company leverages its immense user base to generate billions in net income and free cash flow.
Meta Platforms (NASDAQ: META ) and its fellow Magnificent 7 companies have been on fire over the past year. META stock, in particular, is up over 52% for the year, head-and-shoulders above the broader market's 21% gain.
EU consumer authorities told Facebook owner Meta on Monday to take action to assuage European consumer groups' fears over its new "pay or consent" model or face further action.
Meta said it is expanding its business subscription program to users in India. The tech giant last year introduced Meta Verified for businesses on Facebook and Instagram, and recently began offering subscriptions for businesses on WhatsApp.
Mag 7 stocks to keep an eye on in the stock market this week.
As of July 2024, over 60% of the human population uses social media. This number will continue rising as global economies improve.
The digital advertising industry is growing, which is good news for both Meta and Reddit. Meta's Q1 financials were excellent as net income rose by triple digits year over year.
That price target implies 15% upside on the current share price. The pundit's new Meta note comes on the heels of news about one of its divisions.
The stock market's rally has raised concerns about an impending 10-15% correction. While mega-cap tech stocks have struggled, value stocks unaffected by AI hype may fare better.
Meta Platforms is set to report earnings for Q2 on July 24th, and I expect shares to rise, as revenue and earnings to top the higher end of consensus estimates. My optimism is based on strong consumer engagement, driven by the company's AI efforts and robust advertising momentum. I anticipate revenues of $39-40 billion, exceeding the guidance of $36.5-39 billion, and project Q2 operating income at around $15-16 billion, above the consensus estimate of $14.5 billion.