Meta Platforms is an underappreciated AI company with significant long-term potential. Despite being a leader in social media and advertising, Meta’s stock has been undervalued due to market fluctuations and concerns about the AI bubble bursting. However, the company’s billions of users and robust advertising business provide a solid foundation for growth.
The core of Meta’s business is its flagship app, Facebook, as well as several other apps like WhatsApp, Instagram, and Messenger. These platforms serve 3.45 billion people daily, providing unparalleled access to data and time. To monetize this base, Meta uses AI-powered advertising, which targets specific customers with high accuracy.
Meta’s large language model (LLM), Llama, plays a crucial role in this process. It helps advertisers pinpoint the right target audience, increasing sales conversions and budget retention. The company also uses AI to provide targeted content, improving user engagement and ad impressions. As a result, Meta’s ad revenue has grown 26% year-over-year, with an increase of 14% in ad impressions.
Management has raised its outlook for AI spending in the coming years, investing in superintelligence and devices. CEO Mark Zuckerberg expects a “paradigm shift” over the next five to seven years, driven by the potential of Llama. Despite market volatility, Meta’s business is well-positioned for long-term success, making it an attractive investment opportunity at its current price.
Source: https://www.fool.com/investing/2025/11/23/this-could-be-most-undervalued-ai-stock-into-2026