Meta Platforms ( META 1.60% ) With a vast user base spanning WhatsApp, Facebook, Instagram, and Messenger, the company has numerous active users on its platforms. This allows it to experiment with new products and services. The Threads platform quickly amassed over 100 million users within five days of its launch last year, largely because it was user-friendly for Instagram users to explore.
Once more, the company aims to utilize its users in order to capitalize on the latest trend: artificial intelligence (AI). CEO Mark Zuckerberg views this as a significant opportunity, and although Meta may be entering the field later than others, it has set ambitious goals for the future. If these goals are met, it could further enhance the already successful stock.
Could Meta’s artificial intelligence surpass ChatGPT in size?
ChatGPT is a chatbot powered by artificial intelligence. It was made accessible to the public in November 2022, sparking enthusiasm about AI’s potential to revolutionize tasks and possibly replace some jobs. ChatGPT currently boasts 200 million active users per month, but Zuckerberg believes Meta’s AI could exceed that number by the end of the year.
Meta has introduced a new artificial intelligence model called Llama 3.1, claiming that it outperforms the latest GPT-4o and Claude 3.5 Sonnet on various tests. This model is available as open-source, allowing anyone to view and modify the code, which may draw interest from numerous developers and lead to enhancements over time. The AI will be incorporated into Meta’s software and virtual reality devices, enabling a wide range of users to experience it and possibly adopt it regularly.
With the vast number of users using Meta’s apps, it may not be too challenging to exceed ChatGPT in terms of users, even if the aim is to achieve this before the year ends.
The potential success of this could be a significant victory for Meta.
It wouldn’t be surprising if Meta manages to attract a large number of users to its AI platform, particularly if it is easily integrated into popular apps like WhatsApp and Facebook. The true challenge, however, lies in how long people will continue to use it and whether it can compete with ChatGPT. While some users may experiment with the Meta AI out of curiosity or by accident, leading to an initial increase in user numbers, for it to truly make a significant impact on the business, it must demonstrate its superiority over ChatGPT or establish itself as a credible alternative. This may require some time to validate.
If that occurs and users do find value in Meta’s platform. chatbot , the company could explore methods to generate revenue from the product. For example, ChatGPT provides a subscription model for access to an enhanced version of its chatbot. Microsoft Copilot is included in the Office software package for an extra fee.
Furthermore, if Meta’s AI technology can improve the user experience in its current applications, resulting in increased usage and a larger user base, this could attract additional revenue from advertising.
Meta has been experiencing significant growth and the addition of AI technology could further increase optimism towards the company’s stock. In the quarter ending June 30, Meta saw a 22% increase in sales, reaching $39 billion. net income The revenue increased sharply by 73% to reach $13.5 billion. This growth was driven by both a 10% increase in the average price per advertisement and a similar rise in the number of ad impressions across the company’s suite of applications. The stock has surged approximately 40% since the beginning of the year.
Should investors consider purchasing Meta Platforms stock?
Meta’s business is thriving, however, I suggest waiting before investing in the stock until it demonstrates that its new AI assistant can achieve the level of success that Zuckerberg anticipates. With numerous major tech companies introducing their own chatbots, it may prove challenging to attract users from one platform to another.
If Meta’s AI successfully demonstrates its ability to attract users, it may have a significant impact. tech stock An obvious purchase as it has the potential to further increase the company’s already impressive growth rate.
