02. Meta Platforms, Inc. (NASDAQ:META)
Return on Common Equity (TTM): 39.83%
YTD Share Price Gain as of June 23: 19.30%
Meta Platforms, Inc. (NASDAQ:META) is not just riding the AI wave, it’s helping shape it. In Q1 2025, the company crushed Wall Street expectations, posting earnings of $6.43 per share versus the expected $5.23. Revenue hit $42.3 billion, up 16% year over year, while free cash flow came in at $10.3 billion. The stock continues to shine, not just because of its size, but because of how deeply it’s embedding AI into every part of its business.
CEO Mark Zuckerberg laid out five core AI opportunities: AI powered advertising, more engaging content recommendations, business messaging, Meta AI (its personal assistant platform), and smart AI devices like glasses and VR headsets. Each of these is not only transforming user experiences but also setting the stage for Meta’s next decade of growth.
Let’s start with AI advertising, Meta Platforms, Inc. (NASDAQ:META) bread and butter. The company has rolled out new AI models that are boosting ad conversions, like a 5% lift for Reels ads and growing adoption of its AI ad creative tools, now used by 30% more advertisers than last quarter. Ad revenue for Q1 hit $41.4 billion, up 16%, with average ad prices increasing by 10%, a clear sign of improved ROI for businesses.
Meanwhile, Meta AI, the company’s digital assistant, is now reaching nearly 1 billion monthly users, and the newly launched Meta AI app is gaining traction. Zuckerberg believes this could become one of the most important digital services globally, with eventual monetization through product recommendations and premium features.
AI is also reshaping Meta’s social apps. AI powered recommendations increased user engagement across Facebook, Instagram, and Threads, Threads alone saw a 35% boost in time spent. Llama 4, Meta’s most advanced open source AI model, is already improving content personalization across the platform.
Meta Platforms, Inc. (NASDAQ:META) investments are paying off in more ways than one. With $70.2 billion in cash, a 41% operating margin, and continued buybacks and dividends, the company is financially robust. As it moves toward general intelligence and AI native devices, Meta is positioning itself as one of the most compelling long term AI bets in tech today.
