Meta’s (Meta) has led it to the creation of the Super AI team to employ Openai and Anthropic talents, with a $ 14.3 billion address for Scale Ai that naming data. Now, the owner of social media giants such as WhatsApp, Instagram and Facebook are knocking on Appl doors.
According to a recent report before BloombergRUOMING PANG, AI’s head of AI, leaves the company to join Meta for a compensation package that has been reported more than $ 200 million. Pang was responsible for several elements of Apple Intelligence and other features on the device in the iPhone maker. Before Apple, it was also in Google (Googl).
This is an interesting step by the definition. Apple was a dilapidated company known in artificial intelligence, a major reason for the performance of gloomy stock prices in 2025. However, Pang’s adaptation data is impressive, and in Meta, he may be able to move the needle seriously.
But what does this last step mean for Meta, which has already increased by 24 % on the basis of YTD? Let’s discover.
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The Bang addition to “AI Avengers” from Zuckerberg only enhances the strategic focus of the CEO of Meta on artificial intelligence because he is still convinced that this revolutionary technology will be the next growth driver of his company, as it highlighted in a recent article.
Moreover, pushing the continuous Meta to artificial intelligence already appears in the user’s behavior across his main platforms. The time spent is climbing, as Facebook showed 7 % growth, Instagram 6 %, and threads by 35 % are much higher. This increase closely follows the company’s use of the spontaneous organization to improve what users see, which makes the content more attractive. At the same time, the average global average price per m increased by 10 %, indicating that advertisers are aware of better returns, perhaps because of the improvement of the targeting of these algorithms now.
It is worth noting that Meta also published the dedicated Meta AI application. It aims to add more accuracy to the user experience through audio reaction, personal responses, and the content that feels more specially in individual tastes. This is well suitable for the broader Zuckerberg strategy of building Meta AI in a dominant assistant, an ambitious that does not seem out of reach, thanks to Meta’s access to wide groups of user data from all over his ecosystem,
There are also clear justifications for the sharp increase in the capital expenses associated with AI. The company believes it can enhance the accuracy of the advertisement, provide richer reactions, and increase the arrival of Meta Ai while it is moving towards automating the entire advertising cycle by 2026. If this happens, it will represent a structural shift in how to create and spread campaigns, which requires less human inputs and more than the supervision of artificial intelligence.
Interestingly, it is not only programs. The most powerful integration of artificial intelligence in the company’s products, such as Ray-Ban, augmented reality/virtual reality glasses, can lead a new structural transformation that may threaten the domination of a smartphone.
Meta was not at risk of financial data, despite the aggressive batch of acquisitions and innovation. Meta has constantly achieved strong financial results. Over the past ten years, the company has grown both revenues and profits at the annual growth rates of 29 % and 37 %, respectively.
Moreover, the company has now informed profits that exceeded nine -quarters. In the last quarter, Q1 2025, META recorded revenues of $ 42.3 billion, which reflects a 16 % increase during the same period last year.
The profits rose sharply. The profit for the share was $ 6.43, which represents a 37 % jump from the previous year and overcomed the unanimity estimate of $ 5.24. This was accompanied by an expansion of operating margins, which improved to 41 % of 38 % in the similar period.
The performance of the cash flow was similarly solid. The net cash of operational activities amounted to 24.03 billion dollars, compared to $ 19.25 billion in the previous year. The company ended the quarter with $ 30.1 billion in cash and its equivalent, which enhances its financial strength.
For Q2 2025, Meta expects revenues to decrease in the range of $ 42.5 billion to 45.5 billion dollars. The mid -guidance point indicates 12.6 % annual growth. However, the administration has reviewed its expectations for the whole year to the bottom, and now expected the total revenue between 113 billion dollars and 118 billion dollars, compared to the previous drop of $ 114 billion to $ 119 billion.
In general, analysts remain convinced of dead horizons. Consequently, they set a consensus classification for “strong purchase” at an average target price of $ 731.50. Although this indicates the limited biological capabilities, the high target price of 935 dollars involves upscale capabilities of about 30 % of the current levels.
Of the 54 analysts covering the shares, 45 have a “strong purchase” classification, three have a “moderate purchase” classification, five with a “comment” classification, and one has a “strong sale” rating.
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On the date of publication, Pathikrit Bose did not have positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article are only for media purposes. This article was originally published on Barchart.com
