Meta Stock Faces This Big Risk, Despite AI Ambitions
Meta Platforms (NASDAQ: META) recently introduced its latest artificial intelligence (AI) models based on the new Llama 4 foundation model, as the company continues to advance its AI initiatives. Llama has significantly enhanced user engagement and increased the time users spend on its social media platforms, contributing to Meta's substantial growth in recent quarters.Advertisers also utilize Llama to develop more effective campaigns and improve audience targeting, resulting in a 6% increase in ad impressions and a 14% rise in average ad prices for Meta last quarter. Overall, the company achieved robust revenue growth of 21% in the fourth quarter. However, the company faces one significant risk, at least in the near to medium term.Continue reading
Meta Platforms (NASDAQ: META) recently introduced its latest artificial intelligence (AI) models based on the new Llama 4 foundation model, as the company continues to advance its AI initiatives. Llama has significantly enhanced user engagement and increased the time users spend on its social media platforms, contributing to Meta's substantial growth in recent quarters.
Advertisers also utilize Llama to develop more effective campaigns and improve audience targeting, resulting in a 6% increase in ad impressions and a 14% rise in average ad prices for Meta last quarter. Overall, the company achieved robust revenue growth of 21% in the fourth quarter.
However, the company faces one significant risk, at least in the near to medium term.