This article first appeared on GuruFocus.
Meta Platforms (META, Financials) continues to rely on digital advertising as its core business, even as it ramps up investment in artificial intelligence to strengthen ad targeting and engagement across its social media platforms. Analyst Dhierin Bechai said Meta’s AI focus has yet to produce direct monetization but remains a critical growth driver.
The company’s AI efforts, including its open-source LLaMa model, underpin advertising efficiency and user experience across Facebook, Instagram, and WhatsApp.
While capital spending remains high, Meta’s EBITDA is projected to grow 18% annually, offsetting near-term pressure on cash flow.
Bechai assigned Meta a $904 price target, representing about 42% upside from current levels. He argued that despite limited diversification compared with peers such as Microsoft, Amazon, and Alphabet, Meta’s AI strategy positions it as a quietly powerful player in the broader AI race.
