Meta Platforms has a market capitalization near $1.9 trillion and ranks among the 11 companies worth $1 trillion or more. Strong recent performance and substantial AI investments could enable Meta to reach a $3 trillion valuation by 2029. Two of the three existing $3 trillion companies are AI leaders, underscoring AI's market impact. Meta is spending on data-center infrastructure and offering high compensation to attract AI talent. AI-powered algorithms have increased user engagement, with reported 5% more time on Facebook and 6% on Instagram in one quarter. These engagement gains deepen ad revenue potential and could materially boost financial results and stock price through 2029.
Of the three publicly traded companies currently worth $3 trillion or more, two are among the leaders in the rapidly growing artificial intelligence (AI) industry. Meta Platforms could also ride that wave over the next few years to join their ranks. The company has been investing heavily in AI, spending substantial amounts on data center infrastructure and offering the most sought-after AI workers compensation packages that would make some professional athletes envious.
AI has already improved Meta Platforms' business. The company still makes almost all of its revenue through ad sales, but thanks to AI-powered algorithms, it is deepening user engagement with its websites and apps, including Facebook and Instagram. According to CEO Mark Zuckerberg, the company's improved algorithms drove a 5% increase in time spent on Facebook and 6% on Instagram during the second quarter alone.
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