Meta’s AI Flex Leaves Rivals in the Dust—Time to Bet Big on META Stock?
Meta Platforms (META) just dropped an AI bombshell—outperforming benchmarks and leaving competitors scrambling. With Zuckerberg’s war chest and relentless R&D, this might be the tech play of May.
Wall Street’s algo-trading bots are already salivating. Meanwhile, retail investors are still trying to figure out if ’AI’ stands for ’actual income’ or ’another illusion.’
Source: Reuters / Andrew Kelly
META Earnings Show Strong AI Performance: Is the Stock Now a Buy?
In late April, Meta Platforms announced a new AI standalone app. Indeed, the offering was set to help it better compete with companies dominating the consumer facet of the technology, like Alphabet (GOOGL) and OpenAI. That has continued the social media firms’ AI push that could already be paying off in a big way.
The stock has had a difficult 2025, as many of its mega-cap peers did. With increased trader caution amid macroeconomic pressures and geopolitical tensions, things are expected to begin easing up in the NEAR term. That could be huge for META, as its AI outperformance could drive it to be a clear buy for the month of May.
For Meta’s Q1 earnings report, its revenue came in at the $42.31 billion mark, up 16% year-over-year. Moreover, its earnings per share increased 37%, reaching a $6.43 level. Interestingly, that was far above analysts’ expectations of revenue, coming in at just $41 billion.
What is interesting to note amid the impressive results is the part that AI is playing. The company notes that AI-powered recommendations have driven traffic on Facebook and Instagram to increase. Specifically, users are spending 7% and 6% more time on the application because of the tools.
That is clearly a benefit to advertisers, but not the only way AI is helping. The technology is also increasing the ability for advertisers to find relevant audiences. This is why META’s ad impression jumped 10% from last year. That sector’s success is not dependent on macroeconomic conditions. Therefore, I could fuel a mad dash to buy up the stock that is strategically placed to benefit from its own AI advancement.
