"Since that already represents nearly half the planet, it's becoming harder for the company to grow its user base. This poses a risk to its advertising business, where it generates most of its revenue. That's why Meta is now focusing more on increasing engagement instead. It's using tools like AI to learn what type of content each user likes to see on Facebook and Instagram, so it can feed them more of it to keep them online for longer periods of time."
"I think Meta Platforms could join them in the coming years, as artificial intelligence (AI) increases engagement on its social media apps like Facebook and Instagram, which is fueling rapid growth in its operating results. The company has a market capitalization of $1.8 trillion as I write this, so investors who buy Meta stock today could earn a 67% return if it does join the $3 trillion club."
"But Meta CEO Mark Zuckerberg wants to take the AI strategy a step further. He believes every single user will soon have a personalized AI agent that understands their interests, so every time they open Facebook or Instagram, they will be met with an even more specific set of content. He even thinks these agents will be capable of generating new content for each user, which I think will accelerate social networks' transition from places to connect"
Meta Platforms delivered a strong 2025 driven by aggressive investments in artificial intelligence. AI is boosting engagement on Facebook and Instagram through personalized recommendations and content generation, which increases time spent and ad exposure. AI-powered recommendations produced a 30% year-over-year rise in Instagram Reels viewing during Q3 2025. The company faces limited user growth after reaching about 3.6 billion daily users, so focus has shifted from expanding user counts to deepening engagement. Meta's market capitalization stands near $1.8 trillion, implying roughly a 67% upside if valuation reaches $3 trillion driven by continued AI-led operating growth.
Read at The Motley Fool
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