None

On July 27, Meta (META. O) witnessed a significant 8% surge in its shares. This was attributed to a positive revenue forecast that showcased how artificial intelligence (AI) was instrumental in enhancing engagement and advertising sales for the social media giant, even amidst economic uncertainty. As a result, the company's market value was projected to increase by approximately $60 billion, based on premarket movements. This was bolstered by strong second-quarter earnings, which prompted 16 analysts to raise their target price for Meta's stock. Mark Shmulik of Bernstein commented that Meta was unparalleled in the realm of digital ads, highlighting the company's exceptional growth rate of 15-24% as per its impressive guidance, surpassing investors' expectations. During the second quarter, Meta's ad revenue witnessed a 12% increase, outperforming the 3% growth observed at Google, which is owned by Alphabet. This accomplishment can be attributed to Meta's consistent growth in user engagement and improved monetization of Reels, a short-form video format aimed at rivaling TikTok.
Morningstar analyst Ali Mogharabi noted that advertisers were displaying increased confidence in Meta's AI-powered campaign planning and measurement capabilities, resulting in higher spending. Furthermore, the monetization of Reels continued to improve. This positive view from analysts reveals how Meta's focus on cost reduction and AI-driven engagement has transformed it into a favorite among investors in 2022, despite previous criticism for its ambitious metaverse plans. Analysts have set a median price target of $342. 50 on Meta, representing a nearly 15% increase from its last closing price. The company's 12-month forward price-to-earnings ratio stands at 21. 28, surpassing Alphabet's 20. 47 and the industry median of 15. 18. Additionally, Lam Research, a chip-making tools supplier, predicted quarterly revenue that exceeded expectations on Wall Street. This surge in revenue can be attributed to heightened demand resulting from the increased adoption of AI technology among semiconductor manufacturers.
Brief news summary
None
AI-powered Lead Generation in Social Media
and Search Engines
Let AI take control and automatically generate leads for you!

I'm your Content Manager, ready to handle your first test assignment
Learn how AI can help your business.
Let’s talk!
Hot news

What is Blockchain? Demystifying the ledger that …
Best known as the technology powering Bitcoin, blockchain is emerging as a trustless, tamper-proof system with the capacity to revolutionize sectors from finance to healthcare.

“Murderbot”: An AI That Couldn’t Care Less About …
For decades, films exploring the potential of machine consciousness—such as Blade Runner, Ex Machina, I, Robot, and many more—have generally treated the emergence of such consciousness as inevitable.

Robinhood launches layer-2 blockchain for stock t…
Robinhood’s expansion into real-world assets (RWAs) is accelerating, as the digital brokerage rolls out a tokenization-focused layer-2 blockchain and launches stock token trading for users in the European Union.

BRICS Leaders Advocate for Data Protections Again…
The BRICS nations—Brazil, Russia, India, China, and South Africa—are increasingly outspoken about the challenges and opportunities posed by artificial intelligence (AI).

AI and Climate Change: Predicting Environmental I…
In recent years, the merging of technology and environmental science has enabled innovative strategies to address the urgent challenges of climate change.

Rethinking Stablecoins: How Governments Can Embra…
Over the past decade, cryptocurrency has experienced rapid growth, originating from skepticism toward centralized authority.

Why Is Everyone Talking About SoundHound AI Stock?
Key Points SoundHound offers an independent AI voice platform serving multiple industries, targeting a total addressable market (TAM) of $140 billion