Meta Platforms Prioritizes AI Investments
Meta Platforms (NASDAQ: META) is significantly increasing its investment in artificial intelligence (AI), planning to spend approximately $71 billion on capital expenditures in 2023, with projections for even larger outlays in 2026. This strategic pivot comes as the company aims to enhance its digital advertising revenue, which rose to $50 billion in Q3 2023, marking a 26% year-over-year increase. Key metrics indicate a 14% rise in ad impressions and a 10% increase in price per ad.
Despite an 18% decline in stock price since August, trading at a price-to-earnings ratio of 28.5, Meta is considered one of the more affordable options among industry peers, holding a market cap of $1.6 trillion. The company boasts a daily active user base of 3.54 billion, illustrating its competitive position in the social media landscape.
