Analysts Identify 10 Least Risky Internet Stocks To Invest In

5. Meta Platforms, Inc.  (NASDAQ:META)

Meta Platforms, Inc. is the developer of products that help people to share and connect with their family and friends. It enables them to connect through personal computers, augmented reality, wearables, mobile devices, and virtual reality and mixed reality headsets. The company operates in Reality Labs (RL) and Family of Apps (FoA) segments.

Guggenheim reiterated its Buy rating on the stock last week, citing strong user engagement on its platforms as a major strength for the company. Regardless of macroeconomic uncertainty, the firm remains a preferred choice for advertisers. The research firm expects Meta to benefit from growth in reels and increased efficiency through its Advantage+ platform. Although the firm cut its target price to $675, it still sees a potential upside of 30.8%.

A few days ago, the company announced the expansion of its artificial intelligence models. As per the announcement, Meta will use public content from European Union users to train its AI models. EU users of WhatsApp, Facebook, and Instagram will be notified about the data collection.

“We’re following the example set by others, including Google and OpenAI, both of which have already used data from European users to train their AI models. We’re proud that our approach is more transparent than many of our industry counterparts.”

With regulation becoming an increasing risk for these tech companies, it is interesting to see META getting proactive and complying from the beginning rather than waiting for regulatory authorities to crack down later.