Meta Platforms (META 2.52%) has been one of the most promising stories of the artificial intelligence (AI) boom so far. You may know the company best for its social media apps -- Facebook, Messenger, Instagram, and WhatsApp -- but Meta also is very present in the world of AI. The company has major AI ambitions and has been investing heavily in the area.
But, in recent weeks, along with other tech players, Meta stock has faltered. This is as investors grapple with a series of concerns, from geopolitical to industry-specific. What's most weighed on Meta are these industry-related worries, with the idea that the AI revenue opportunity may not match the spending levels we've seen.
Still, Meta has been reporting solid earnings growth, and the overall message from the AI community is that demand continues to roar higher. With this in mind, could Meta stock reach $800? Let's find out.
Image source: Getty Images.
Billion-dollar revenue
As mentioned, Meta is a social media giant, and today that's what drives the company's billion-dollar revenue. Advertisers come to Meta to reach us across these apps, and that's been delivering double-digit revenue growth -- and high profitability. In fact, Meta has developed such financial strength that it can afford to pay shareholders dividends and invest aggressively in its AI development.
Meta sees its role in AI as "building personal superintelligence." Across its apps, Meta aims to deliver content and services that are personalized to the user, and this should result in us spending more time on these apps. As a social media leader, Meta is well-positioned to take on such a task. Meanwhile, Meta is working to automate the advertising process and make ads increasingly profitable for those who place them.
The company's AI research and development also should help it develop new products and services over time that may expand its revenue opportunities. So there's reason to be optimistic about Meta's AI journey -- and its strong and steady social media business too.
NASDAQ: META
Key Data Points
The path to $800
Now, let's consider the path to $800. The stock is trading for about $660 right now, so this would imply a 21% gain, and it would push market value to $1.7 trillion -- up from $1.6 trillion right now. So from a math perspective, it works and could easily happen.
Whether it actually will take place in the coming months will depend on investor sentiment. If investors continue to worry about AI spending and the geopolitical and economic situations, Meta's stock could stagnate. It's impossible to predict what may unfold in the near term due to these uncertainties.
But if these problems resolve or uncertainties dissipate, Meta stock could easily march on to $800 in the months to come. And the good news is, even if gains take some time, Meta has what it takes to soar over the long run.
