Even though Meta Platforms (NASDAQ:META) stock is almost certainly headed higher in the coming months, there will be share-price pullbacks along the way. Yet, these are really just opportunities to start a share position or add to an existing one.
Like any company, Meta Platforms has challenges to overcome. However, that’s not a reason for investors to lose sleep at night. Meta Platforms is bound to generate ongoing revenue from the company’s artificial intelligence (AI)-enhanced social media apps.
Assessing META Stock Post-Earnings
After Meta Platforms reported mostly positive second-quarter 2023 earnings results, Louis Navellier and the InvestorPlace research staff suggested that META stock could reach $500. I tend to agree with this.
To me, it’s not a question of if but of when. After all, Meta Platforms beat Wall Street’s quarterly EPS forecast for Q2. That’s not the only reason I’m optimistic about Meta Platforms’ future prospects, though.
Bear in mind, Meta Platforms’ bread and butter is the company’s “family” of social media apps. These include Facebook, Instagram and WhatsApp, and they generate strong revenue for the company.
There’s also Reels, Meta Platforms’ video-sharing app that’s similar to TikTok. Impressively, Reuters reported that there are over 200 billion “Reels video plays on Facebook and Instagram” per day. Moreover, that’s “up from 140 billion last fall.”
Meta Platforms Embeds AI in Its Popular Apps
Meta Platforms made a smart move when the company included generative AI functionalities in Reels. Not only that, but Meta Platforms CEO Mark Zuckerberg has indicated that the company plans to integrate AI technology “into every single one of our products.”
This doesn’t mean Meta Platforms can develop these AI-driven apps without encountering some growing pains. For example, after Meta Platforms’ Threads app (which is similar to Twitter) garnered 100 million sign-ups, it’s been reported that some users have left Threads.
Consequently, Meta Platforms may add some “retention-driving hooks” to Threads. I’m guessing that these “hooks” will probably involve generative AI in one way or another.
Additionally, Meta Platforms reportedly plans to launch AI-powered chatbots with different personalities. This could happen as soon as September, and it might prove to be a watershed moment for Meta Platforms and for the AI industry in general.
META Stock: Hold Your Shares and Add on Any Dips
I fully expect that Meta Platforms will overcome its growing pains and challenges. So, investors should prepare for the Meta Platforms share price to fluctuate sometimes but eventually reach $500.
In other words, the best strategy is to hold META stock throughout its ups and downs. You can even add to your position if the stock declines 5% or more.
On the strength of AI-driven social media platforms, Meta Platforms has many more forecast-beating quarters in its future. Therefore, Meta’s investors will continue to defeat the skeptics and short-sellers again and again.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
