Meta Platforms: Riding The AI Tailwind To A $2 Trillion Valuation
Summary
- Meta Platforms is not just a social media company but a tech giant leading in AI and augmented reality, setting up for long-term dominance.
- Meta's open-source Llama AI models and AI assistant are driving significant user engagement and revenue growth, with click-through rates up 11% and conversions rising 7.6%.
- Meta's Reality Labs is pioneering AR hardware, like Orion glasses, which could redefine tech interaction and potentially rival smartphones in ubiquity.
- Despite heavy investments, Meta maintains strong financial health with operating margins above 40% and is expected to generate $95 billion EBIT by 2027.
- In my view, an expected return of 8-17% CAGR through the next 3 years should be reasonable, as Meta is on track to push beyond the $2 trillion valuation mark.
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