Meta Platforms (NASDAQ:META) isn’t just a household name or a metaverse-equipment purveyor. The company is a juggernaut in the fields of social media advertising and generative artificial intelligence (AI). Getting exposure to Meta Platforms’ leading-edge technology is an absolute necessity as the year enters into its final months, so now is a great time to buy and hold META stock.
Don’t get the wrong impression here, though. Meta Platforms isn’t so reliant on advertising revenue that the company can’t survive without it. Indeed, as we’ll discover, the company is evolving its business model, and the future of social media might actually be ad-free.
Meta Platforms Moves Forward With Gen-AI Tools
Meta Platforms’ competitors should definitely start to feel the heat in 2023’s fourth quarter. Even if it is making progress in embedding generative AI functionality into its products, Meta Platforms always seems to be several steps ahead.
In a recent example of this, Meta Platforms announced it rolled out generative AI tools for advertisers across the company’s social media platforms. Now, marketers on Facebook and Instagram can use generative AI to create image backgrounds, for example, or variations of written text.
These generative AI tools can be found in Meta Platforms’ Ad Manager software. Meta Platforms found that “50% of advertisers expect the tools to save them five or more hours per week creating ads.”
Thus, Meta Platforms’ advertisers can start generating new content or optimizing existing content with the assistance of generative AI. I believe it’s a potential game-changer for the global ad-supported social media market.
META Stock: The Future Won’t Depend on Ad Revenue
At this point, some investors might have the wrong impression about Meta Platforms. Sure, the company is innovating new concepts for social media advertising. Yet, this doesn’t mean Meta Platforms is entirely dependent on ad revenue.
It’s no secret that some regulators in the European Union (EU) oppose Meta Platforms’ use of social media advertisements. They’re concerned about how Meta Platforms collects and sells users’ personal data.
Meta Platforms is proactively addressing this issue with plans to introduce advertisement-free access to Instagram. That should help to placate EU regulators while also providing a potential revenue source for Meta Platforms, as the ad-free Instagram plan would cost its users 11 pounds per month.
If this turns out to be a big success, it could signal a major shift in Meta Platforms’ business model. The company could end up pioneering an industry-wide pivot away from advertisements and toward a subscription-based model.
At the very least, it shows that Meta Platforms is flexible and forward-looking. The company doesn’t need to harvest users’ data to generate revenue. Ultimately, that’s good news for Meta Platforms and its users and stakeholders.
Stay the Course With META Stock for More Gains
Meta Platforms is sometimes controversial, but the company is constantly pushing the boundaries of social media technology. In 2023, Meta Platforms is effectively deploying generative AI functionalities into its social media ads. Yet, the company is also shifting away from over-dependence on ad-based revenue.
In other words, Meta Platforms is still a technology titan that never stops evolving. Therefore, I expect META stock to provide outstanding value to shareholders in the fourth quarter. Current Meta Platforms investors should stay long, and I encourage prospective shareholders to start a position today.
On the date of publication, David Moadel did not hold (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.
