Meta Platforms (NASDAQ:META) stock was a steady climber until late July, when it wavered and stalled. However, investors can remain calm and patient. Truly, Meta Platforms is a technology industry leader, and its shares could still finish 2023 on a strong note.
Meta Platforms is constantly developing new products and services to stay on the cutting edge. For example, Meta recently unveiled a new augmented/virtual reality (AR/VR) headset and smart glasses.
However, let’s not forget that Meta Platforms’ bread and butter is the company’s social media platforms. Meta is carefully deploying artificial intelligence (AI) and reconsidering its advertisement-based business model. For these reasons, investors should maintain a META stock position in their long-term portfolios.
Why META Stock Got Stuck at $300
From late July to early October, the Meta Platforms share price got stuck around the $300 mark. Perhaps buyers simply needed a breather to reload after a power-packed first half of 2023.
Market technicians might call this “consolidation” or “digestion” before the next gain. META stock looks ready to blast off in the fourth quarter as the company continues on its path. They exquisitely generate revenue from Facebook, Instagram, WhatsApp, Reels, and Threads.
Importantly, Meta Platforms isn’t being reckless in its quest for international social media market domination. Rather, the company is demonstrating sensibility as they prepare to launch ad-free subscription options for Facebook and Instagram.
It’s a savvy strategy for two reasons. First, European Union (EU) regulators aren’t always fond of Meta Platforms’ advertisements, especially when Meta collects private user data. Thus, ad-free subscription plans could help to placate EU regulators.
Second, Meta Platforms can generate revenue by charging for the ad-free tiers. Reportedly, Meta is considering a 10 euro ($10.49) per month pricing plan for its ad-free offerings.
Meta Platforms’ New AI Chatbots Have ‘Personalities’
OpenAI’s ChatGPT chatbot has certainly garnered a lot of attention in the media. Yet, OpenAI isn’t the only strong competitor in the AI arms race. For instance, Meta Platforms has a new AI virtual assistant that’s been trained on certain Facebook and Instagram posts.
Furthermore, Meta Platforms is introducing AI chatbots with distinct “personalities“. Clearly, this is a direct salvo against ChatGPT and could be a game-changing move if Meta’s personality-driven chatbots become popular with Gen Z consumers.
In addition, Meta Platforms reportedly launched 28 AI-powered personalities for its chatbots, based on the personalities of celebrities. Sure, ChatGPT is popular, but will it respond to users’ queries in the style of football star Tom Brady or fashion model Kendall Jenner?
The point here isn’t about which celebrities Meta Platforms’ chatbots can imitate, however. Instead, I want to drive home the message that Meta Platforms is relentlessly pursuing the latest and greatest in AI technology in 2023.
META Stock: How Long Until $500?
In the fields of social media and generative AI, META looks unstoppable. And if the era of ad-free social media is upon us, Meta is already positioning itself as a leader.
So, don’t fret over short-term fluctuations and consolidations in the Meta Platforms share price. 2023’s fourth quarter should offer plenty of exciting developments and innovations from the leader.
After that, we can only imagine the next achievements of Meta Platforms 2024 and beyond. Therefore, I fully expect META stock to put $300 and $350 in the rear-view mirror soon and hit $500 within a couple of years.
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.
