The year-to-date performance of Meta Platforms (NASDAQ:META) stock is impressive. However, there’s no need to take profits now as Meta Platforms should continue to provide value to its shareholders.
Over the next five years, investors should expect Meta Platforms to make waves with innovations in artificial intelligence technology and the metaverse.
There really isn’t any other U.S. mega-cap company that offers direct exposure to the metaverse like Meta Platforms does.
Meta Platforms is immersed in machine learning tech, including a new product that involves generative AI.
Buy META Stock If You’re a Metaverse Bull
I’m not suggesting that META stock is right for everyone. Contrarian investors might be reluctant because the Meta Platforms share price has been on a tear. Also, some people don’t see a bright future for virtual reality, mixed reality and the metaverse.
However, Meta Platforms can continue to provide excellent value to investors if the metaverse and VR/MR gain traction. Remember, the metaverse isn’t just for video games and recreation. It’s also gaining relevance in the workplace and in job training.
Meta Platforms wants to make virtual experiences more affordable to the public. This is a smart move, and I like the fact that Meta Platforms is lowering the price its Quest 2 VR/MR headset to around $300. That’s much more affordable than Apple’s (NASDAQ:AAPL) $3,499 headset.
Meta Platforms Dives Deep Into AI
Meta Platforms won’t just be a metaverse company during the next five years, though. It will also be a major player in the market for products and services with machine learning connections.
I agree with Wolfe Research analyst Deepak Mathivanan’s assessment of Meta Platforms’ future prospects with generative AI.
“META is one of the handful of companies in our coverage universe where the advancements in Gen AI recently can have a significant impact on financials in the medium term,” Mathivanan said.
I’d add to that thought with the claim that machine learning will have a positive long-term impact on Meta Platforms’ bottom line. The company is already adding generative AI image, video and text functionalities into Facebook and Instagram.
Plus, Meta Platforms is currently deploying its Massively Multilingual Speech AI research models. These can reportedly “identify more than 4,000 spoken languages, 40 times more than any known previous technology.”
In addition,Meta Platforms recently introduced VoiceBox, “a generative AI model that can help with audio editing, sampling and styling.”
This can help content creators edit their audio tracks, but there’s more to the story.
VoiceBox can also leverage generative AI to help visually impaired individuals “hear written messages from friends in their voices,” as well as “enable people to speak any foreign language in their own voice.”
So, Where Will META Stock Be in 5 Years?
Clearly, Meta Platforms isn’t just dabbling in the metaverse and machine learning. It’s knee-deep in those tech segments, and I feel that this is bullish for Meta Platforms in the long run.
Ask yourself: Are you fully on board with Meta Platforms’ investments in the metaverse? If not, then you probably shouldn’t bet your money on Meta Platforms.
If you’re prepared to take a ride with Meta Platforms into the metaverse and AI markets, however, then feel free to buy META stock. I expect the stock to easily reach $500 by 2025, so either get on board or get out of the way.
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.
