Meta Platforms (Nasdaq: META) may be best known for its social media services, but it’s also a leading artificial intelligence (AI) company. Meta AI, the company’s chatbot available on Facebook, Instagram, WhatsApp, and Messenger properties, has become a leader in generative AI.
As of the company’s third quarter, Meta AI had more than 500 million monthly active users. And in early October, Meta announced that more than 1 million advertisers created more than 15 million ads using its generative AI tools last month.
Although there is still a lot of uncertainty regarding generative AI, it is in an advantageous position to have the largest user base of any AI chatbot. And Meta’s advertising business continues to perform well with the help of its AI infrastructure. Advertising revenue rose 19% to $39.9 billion in the third quarter, accounting for almost all of the company’s revenue.
Although some recent policy changes have been controversial, metaplatforms are growing rapidly and delivering huge profit margins. The company’s stock price is also reasonably priced, with a recent price-to-earnings ratio (PER) of 29 times.
(The Motley Fool owns shares of and recommends Meta Platforms. Randi Zuckerberg, former director of market development and spokesperson for Facebook and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool. ) is a member of the company’s board of directors.
my stupidest investment
My most regrettable investment move happened several years ago. I invested in Apple and Netflix. I held on for a while and made good profits on both, but since I was new to investing, I should have held on and never sold. These two sales wiped out $1 million in profit that could have been made. Don’t get me wrong. My account worked fine, but it could have been better.
I’ve learned not to pay attention to business news. News is not created to provide thoughtful guidance. It’s to scare you and get attention. – PK, online
The fool replies: It’s true that many headlines are designed to get attention, and many news stories don’t mean much to long-term investors. For example, if a company’s factory suffers a fire, its performance may suffer, but it is more likely to recover and continue to grow.
Apple and Netflix are both doing phenomenally well, so it was a smart investment in this company. The trick to selling is to ask yourself whether you believe your stock will continue to grow and increase in value over time. Great companies often reward investors handsomely after years, if not decades, of hardship.
(If you have any smart or disappointing investment moves, please share them with us. Email us at TMFShare@fool.com.)
ask a fool
Q. What are “defined benefit” and “defined contribution” retirement plans? – IS, Grafton, VT
A. It may be known by another name. For example, a pension is a defined benefit plan because the amount you receive is determined in advance.
In contrast, a 401(k) or 403(b) account is a defined contribution plan. This is because you (and perhaps your employer) can decide how much to contribute by specifying, for example, 5% or 10% of your funds. Your paycheck will be transferred to your 401(k) account.
Although you know the amount of each contribution, you don’t know how much your account will grow over time, as it largely depends on the performance of the investments you choose.
Defined benefit pensions have become much more common over the past few decades, and defined contribution plans are now even more popular. This has changed risks and responsibilities. Employers have more responsibility in defined benefit plans because they must accumulate sufficient funds to meet future obligations. In defined contribution plans, employees decide how much to save and invest.
For more information about 401(k) plans and other retirement issues, visit Fool.com/retirement.
Q. How should I invest the money I am saving to buy a house in a few years? – RD, Adrian, Michigan
A. Stocks are generally the best for building assets, but you should keep money you will need within 5 years (if not 10 years) out of stocks. The stock market can fluctuate, so you don’t want the stock price to plummet right before you withdraw your money for a down payment.
Keep short-term savings in safer places like high-yield savings accounts, money market accounts, or certificates of deposit (CDs). Good rates on such accounts can be found at Bankrate.com (under “Site Map”) or Fool.com/money (under “Banks”).
