2. Meta-platforms Meta Platforms, which owns Facebook, Instagram, WhatsApp, and Messenger, saw shares rise 194% in 2023 and over 43% in 2024. Despite these increases, the stock has many compelling reasons to invest in the coming decade.
Meta first turned its weaknesses into strengths. Apple allowed customers to refuse data sharing with advertising in 2022, a major privacy change
These developments hurt Meta's advertising business worst. The company recovered by creating an AI discovery engine that analyzes user activity, preferences, and interactions to offer tailored Reels, Groups, Feed, and targeted ads to interested viewers.
These recommendations are driving daily platform usage among U.S. youth (18–29). This group is crucial to advertisers because to its high lifetime value.
Second, Meta wants to unify its AI-powered recommendation system across its video ecosystem (short-form, long-form, and Reels). The company uses a lot of video data to offer more relevant and responsive content to viewers, increasing engagement. AI will increase ad targeting and conversion rates, increasing Meta's ad revenue in the future.
Third, Meta has invested in AI tools and products (Advantage+ package) to automate ad generation. For user engagement, the company is adding generative AI features for content makers.
Fourth, these AI projects have increased Meta's global user base and advertising revenue. The company's monthly active user base rose 6% to 3.98 billion in the fourth quarter of 2023. Meta's ad revenue climbed 24% to $38.7 billion.
Meta, with over half of the world's 8 billion users, is well-positioned to increase its part of the worldwide digital advertising business, which is expected to grow from $363 billion in 2023 to $1.1 trillion in 2032. Meta may appeal to long-term investors due to these strong tailwinds.
stay turned for development