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Meta Platforms Inc (NASDAQ:META) is one of the AI Stocks That Will Skyrocket.
Social media Meta Platforms Inc (NASDAQ:META) might be on its way to lay off a large number of employees, according to a report from Reuters quoted by multiple publications. According to the details, the layoffs could affect as much as 20% of the firm’s workforce. However, a Meta Platforms Inc (NASDAQ:META) spokesperson called the reports “speculative reporting about theoretical approaches.”
On March 5th, Arete downgraded Meta Platforms Inc (NASDAQ:META)’s shares to Neutral from Buy. It also cut the share price target to $676 from $732 and noted that worries about the firm’s extensive capital expenditure in the AI era could affect the firm’s profitability. Arete added that even though Meta Platforms Inc (NASDAQ:META) was aggressively investing in AI infrastructure capabilities, its revenue growth was not matching the trend. Consequently, the firm cautioned that the technology company’s margins could be affected as a result. Meta Platforms Inc (NASDAQ:META)’s capital expenditures have worried investors as well; however, some commentators like CNBC’s Jim Cramer believe that the spending is justified to preserve the firm’s moat in the social media industry.
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Meta Platforms Inc (NASDAQ:META) is one of the largest social media companies in the world. It is known for its Facebook, Instagram, and WhatsApp platforms.
While we acknowledge the potential of META as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
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