Meta platforms today
As of 02/7/2025 20:00 on the Eastern
- 52-week range
- $ 414.50
▼
$ 725.01
- Dividend yield
- 0.28%
- P/e ratio.
- 29.87
- Value is valuable
- $ 710.83
Meta platforms NASDAQ: met Continues to be one of the best actions of artificial intelligence. As of the closure of February 6, the shares were estimated by 22%. This is, of course, the best performance of any of the magnificent seven shares. After a recent report on the income of the company, the shares received many updates from analysts by Wall -Strithon. Since the release of 22 tracks of analysts, Wall Street Marketbeat has released new price targets for shares. Of these, 21 modernized his goals; The other left him unchanged.
In general, the average value of their new price purposes implies an increase in the action of 7%. This may not sound much, but it is noteworthy, given that the company is one of the most modernized shares in the market. This means that recently, as soon as Meta reaches its target price, it will be updated again. This is not surprising, given the strong results of the company’s profit. Below I will break the recent META results. I will also tell you how the company continues to add value to its advertising business. Finally, I will explain why there are many more reasons to be optimistic in this big technological name.
META: Strong upper line, lower and basic results
In the last quarter of 2024, META revenues continued to grow greatly, which is 21%. In addition, his operating margin increased by 700 basic points from 3 quarters of 2023 and 500 basic points just a quarter ago. In general, the company’s diluted profit per share (EPS) increased by 50%. Sales exceeded 3% estimates, while EPS was 19% higher than expectations.
Merchants continue to recognize the value of advertising in the family of META applications. The average price paid for the announcement increased by 14%, which is significant in growth compared to only 2% in the 4th quarter of 2023. The use of AI in the company to promote personalized advertisements on its platforms is clearly peeling off with customers of advertising. But how exactly does the company force advertisers to pay more and more on its platform?
Meta Platforms, Inc. (META) Price diagram on Saturday, February 8, 2025
Understanding how META leads to: study Andromeda and Advantage+ Creative
One of the reasons that the company sees a constant price and pricing for its advertising is its new machine training system, Andromeda. Built -in partnership with NVIDIA NASDAQ: NVDAThe system “made it possible to increase the complexity of the model by 1000x model, which we use to search for advertising.”
The company’s advertising model essentially works as a downward filter. It generates many possible advertisements that can be shown at the top, and then filter them out to show someone the best advertising for them. The higher complexity of the model means more advertising at the top of the filter. In general, this should lead to more advertising with which people can interact and purchase products.
This makes advertising in META’s applications more valuable, which means that advertisers are ready to pay more for the service. META notes that Andromeda has improved advertising reviews by 6%. This means that the model excludes fewer relevant ads. Nvidia Grace Dopper Superchip Powers Andromeda, so it invests billions in these chips. The call of earnings showed that most of its capital expenses of 60-65 billion dollars will be focused on its “main business”, which is advertising.
Investments in the infrastructure of artificial intelligence contribute to profit from investment for advertising customers. Meta reports that new users of their Performation+ Creative Platform saw an increase of 22% in relation to advertising costs. This platform uses AI to improve the appearance of advertising. This is the value that customers pay for advertising on meta.
What is next for meta?
Meta has many vectors with which it can continue to develop its business. Given the demonstrated success that the company has demonstrated in the use of AI in its advertising business, I believe that its income for an ad may continue to expand. The company also constantly develops new functions to increase interaction in its applications.
Instagram drum monetization and Threads applications are additional opportunities for increasing the growth of advertising income. This may not begin to add significant value in 2025, but the meter is intended for long -term investments. Long -term monetization can also be obtained from his model of llama and META AI. In addition, the segment of the reality laboratories of the company, which makes the equipment of virtual reality, lost almost 18 billion dollars in 2024. In the end, turning it over to turn this great good for shares. Although this is a very long -term game in the future of virtual reality, it adds a further increase to the action.
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