Only 11 companies are worth $1 trillion or more, and three exceed $3 trillion. Meta Platforms has a market capitalization near $1.9 trillion and could join the $3 trillion group by 2029 if current momentum continues. The company has invested heavily in artificial intelligence, funding data center infrastructure and offering very high compensation to AI talent. AI-powered algorithms have increased user engagement, reportedly driving a 5% rise in time spent on Facebook and 6% on Instagram in one quarter. With over 3 billion daily active users, Meta's platform becomes more attractive to advertisers as AI improves targeting and creative capabilities.
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.
Although it may not keep boosting engagement at similar paces every quarter, these meaningful improvements make Meta Platforms -- which already boasts over 3 billion daily active users -- an even more attractive ecosystem for advertisers. Meanwhile, the company is also making it easier for businesses to maximize the effectiveness of their advertising campaigns. From defining a target audience to generating text and more, the company's efforts in this area are already yielding success.
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