Here's What a $1,500 Investment in Meta Platforms Stock Could Be Worth in 5 Years
The social media giant's stock has the potential to nearly triple in the next five years.
Overview
While its stock has been largely flat over the past year, Meta Platforms (NASDAQ: META) has seen a strong September rally, and this could be just the start. In fact, it feels like the artificial intelligence (AI) stock is just warming up. With $1,500, investors can buy about two shares.
Meta Platforms has already proven highly capable of using AI to drive growth in its core business. It has been doing that in two main ways. First, it's using AI to consistently improve its recommendation algorithm. This is feeding users more relevant content based on their interests and keeping them on Meta's social media apps longer, allowing it to serve those users more ads.
Details
Second, it supplies its advertisers with AI-powered tools they can use to create better, more effective ads, while also improving ad relevancy and increasing conversions. This is allowing it to charge higher ad prices. This dynamic could be seen at work in Q2, as Meta's ad load jumped 14%, while ad prices climbed 12%.
Source
Originally published at www.fool.com.