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We won’t tell you what to buy or what to hold, but there are few Big Tech stock picks that look better than Meta Platforms (NASDAQ:META) in 2024. Meta Platforms remains a top AI innovator. Meta Platforms respects its loyal shareholders. Thus, we assign an “A” grade to Meta Platforms stock.
Nuveen Chief Investment Officer Saira Malik suggested that 2024 is the “year of being selective,” especially with Big Tech stock investments. This idea is logical, and being selective is acceptable this year. Hold Meta Platforms shares as the company explores new ideas in generative AI and beyond.
Meta Platforms: The Everything AI Company
Some Big Tech firms seek to separate themselves as the “everything AI” company in 2024. Yet, Meta Platforms truly deserves this designation. For instance, Meta Platforms is building a powerful AI system designed to rival OpenAI’s ChatGPT. Furthermore, Meta Platforms debuted an AI chip recently.
Now, we can add this news item to the list of Meta Platforms’ AI-focused achievements. Recently, the company launched enhanced generative-AI features specifically for advertisers.
These updated gen-AI tools, according to the company, will be available in Meta Platforms’ Ads Manager. The updated features include AI-enhanced image and text generation and image expansion and text overlay, and should result in “faster ad creation and better performance.”
Ultimately, these AI features should help drive advertiser interest — and of course, advertising provides significant revenue for Meta Platforms. So, stay tuned for further updates from Meta Platforms on the gen-AI technology front.
Meta Platforms: Dividends as ‘Table Stakes’
It looks like Meta Platforms is, once again, a trendsetter. Truly, it was a watershed moment when the company announced a 50-cents-per-share quarterly dividend earlier this year.
Meta Platforms declared a $50 billion increase in the company’s share-repurchase authorization.
Mark Iong, an equity fund manager with Homestead Advisers, clearly understands the significance of Meta Platforms’ new dividend.
“Dividends will be table-stakes for Big Tech going forward … I think if you don’t pay one, it will now be taken as a sign your business is more volatile,” Iong explained.
Meta Platforms is setting a standard for Big Tech and Magnificent Seven firms to follow. Specifically, Meta Platforms is demonstrating respect and returning value to the company’s shareholders through dividends and buybacks.
Iong also seemed to suggest that Meta Platforms’ strategy will, going forward, contribute to the company’s financial performance.
“What’s exciting is they are doing dividends and buybacks simultaneously, while also cutting costs and growing, which is them stepping on the pedal for profits across the board,” Iong explained.
Meta Platforms Stock: New Technology, Classical Values
Is it an “old” idea to demonstrate respect for the shareholders though dividends and buybacks? If so, then there’s nothing wrong with Meta Platforms deploying an old-but-successful strategy in 2024.
Maybe, we should call them “classical” values instead of “old.” Either way, Meta Platforms remains on the forefront of new, modern technology innovations, including in the area of generative AI.
Consequently, we’re assigning Meta Platforms stock an “A” grade and consider it appropriate for a broad variety of portfolio strategies.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
