META Platforms’ policy chief Sir Nick Clegg recently confirmed what everyone was suspecting 4 years ago at the time of the previous US elections. META was too heavy on moderating content related to Donald Trump, something the company’s upper management now clearly regrets. There is a visible attempt to mend relationships with the upcoming US President Donald Trump. But what impact will this have on the company’s future?
META is a conglomerate famous for its social media platforms, including Facebook, Instagram, and WhatsApp. Facebook boasts over 3 billion monthly active users globally while Instagram and WhatsApp both have 2 billion each. This vast user base has helped the company double its stock price in just over a year, with most of this coming through AI investments.
Meta App 3D sign
META is one of the very few companies that were able to show a return on its AI investments. Its use of AI in advertising has helped it achieve growth, something that is now reflected in its stock price, which is at its all-time high. AI-enabled technologies are now an integral part of the company’s advertiser toolkit and are what enabled the company to register a 22% revenue growth earlier in the year.
Due to this leading opposition in AI, META also wants to be heard when it comes to AI policymaking. Mark Zuckerburg’s $1 million donation to Donald Trump’s inaugural fund may not be a game-changer, but it shows his intention to mend relationships with Donald Trump, who has accused the platform of leaning too much to the left and favoring his opponents.
Zuckerburg also recently met Donald Trump. All this in the backdrop of Elon Musk’s dominance in politics and the visible involvement of Silicon Valley executives in politics makes for an interesting picture. Zuckerburg has been vocal about Europe’s AI regulations, which he has criticized often. One would think he has a lot to say on this topic in the US, which is why he wants to be close to the decision-makers.
For META investors, this means the management is doing all it can to influence AI regulation in the US. The policies crafted from this will go a long way in cementing META’s place as the leader in AI.
META ranks 3rd on our latest list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 235 hedge fund portfolios held META at the end of the second quarter which was 219 in the previous quarter. While we acknowledge the potential of META as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as META but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
Disclosure: None. This article was originally published at Insider Monkey.
