Meta Platforms: Investing To Become A Leader In AI

Simple Investing
Investing Group Leader

Summary

  • Meta Platforms' first quarter results beat expectations with strong revenue and operating income growth.
  • Weaker-than-expected guidance for the second quarter and increased expenses for AI investments create a buying opportunity.
  • Meta is increasingly recognizing its opportunity in the AI space, with significant acceleration in the next few years to ramp and scale its AI offering.
  • Engagement trends continue to move in the right direction, contributed by the AI recommendation engine and Reels.
  • I am of the view that Meta is in a position of strength to invest today to become a leading player in AI in the future.
  • This idea was discussed in more depth with members of my private investing community, Outperforming the Market. Learn More »

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Kenneth Cheung

I think this sell-off after Meta Platforms (NASDAQ:META) first quarter 2024 results is very similar to what we saw when the company was scaling Reels and not yet monetizing it.

The markets and investors in general tend

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This article was written by

Simple Investing
7.57K Followers

Simple Investing is a former hedge fund and long-only portfolio manager with a track record for outperformance. He managed more than $1 billion in AUM, and is a CFA charter holder who holds degrees in Finance and Accounting. He runs the Investing Group Outperforming the Market.

While having a pure growth or pure value portfolio may do well in certain markets, it leaves investors vulnerable to certain investment styles going out of favor. The objective of Outperforming the Market is to outperform the S&P 500 across market cycles. This is achieved through The Barbell Portfolio, which is comprised of high conviction growth and contrarian stocks.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of META either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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