Tiger Cub hedge fund Coatue unveils a big stake in popular AI startup IPO
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an hour ago
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Prediction: This Unstoppable Stock Will Join Nvidia, Microsoft, and Apple in the $3 Trillion Club Before 2029
Key Points Artificial intelligence (AI) is helping Meta Platforms unlock greater efficiency. The company's digital advertising business is benefiting from these next-generation algorithms. Meta has other potential growth drivers that could fuel the next phase of its growth. 10 stocks we like better than Meta Platforms › There's been an undeniable shift over the past 20 years. During that time, technology companies have climbed the ranks of the world's most valuable companies, which was once the exclusive domain of industrial and energy concerns. For example, in 2005, ExxonMobil and General Electric were top of the class when measured by market cap, valued at $375 billion and $362 billion, respectively. Two decades later, it's the world's technology bellwethers that lead the pack. Topping the charts are three of tech's most recognizable names, which need little introduction. Artificial intelligence (AI) chipmaker Nvidia currently leads the pack at $4.3 trillion (as of this writing), with its stock recently hitting new all-time highs. Software giant Microsoft also notched a new record this week, cracking the $4 trillion mark. Rounding out the top three is iPhone maker Apple, with a market value of $3.1 trillion. With a market cap of $1.9 trillion, it might seem premature to suggest that Meta Platforms (NASDAQ: META) has been earmarked for admission in the $3 trillion club. However, the company's recent performance has been exemplary, and the stock has soared 33% so far this year (as of this writing), following 65% gains in 2024. Its winning streak appears poised to continue. The ever-increasing reach of its social media platform, ongoing leverage of digital advertising, and novel strategy for leveraging AI could combine to help Meta earn its membership in this exclusive fraternity. A digital advertising powerhouse The dawn of generative AI in late 2022 marked a pivotal point in the evolution of technology, and companies that were able to capitalize on that opportunity have reaped the rewards. Meta had already established expertise in the use of algorithms to advance its business, and generative AI took that to the next level. The company not only uses AI to surface more relevant content on its social media platforms but also provides a suite of AI-powered tools to assist merchants who use its digital advertising services. The results have been profound. In the second quarter, Meta's revenue of $47.5 billion jumped 22% year over year, driving diluted earnings per share (EPS) of $7.14 up 38%. CEO Mark Zuckerberg revealed that AI is "unlocking greater efficiency and gains across our ads system ... [driving] roughly 5% more ad conversions on Instagram and 3% on Facebook." He went on to say that "AI is significantly improving our ability to show people content that they're going to find interesting and useful." Meta's consistent user growth continues to fuel its success, as those who used one of Meta's family of social media platforms -- Facebook, Instagram, WhatsApp, or Threads -- increased 6% year over year to 3.48 billion, so its reach is unrivaled. This captive audience forms the basis of the company's digital advertising success, making it part of a triumvirate in the space. Alphabet's Google controlled an estimated 26% of the U.S. digital advertising market in 2024, while Meta gained ground with 21%, and Amazon took 14%, according to data compiled by business intelligence platform eMarketer. Meta's digital marketing is inseparable from its social media platforms, fueling its inexorable rise. The AI wildcard As the world's largest cloud infrastructure operators, Amazon Web Services (AWS), Microsoft Azure, and Google Cloud have a target market for their AI services, a luxury Meta doesn't have. To capitalize on the opportunity, the company tapped its treasure trove of data and trained a suite of homegrown, open-source, industry-favorite large language models (LLMs). The group, dubbed LLaMA (large language model Meta AI), is available via all the major cloud platforms and powers the Meta AI chatbot. Meta isn't stopping there. The company has recently been on a hiring spree, reportedly spending billions of dollars to assemble the top talent in the field of AI to develop the first "personal superintelligence." Meta has expanded beyond its social media roots into virtual reality (VR) and the metaverse, with AI being the company's latest area of interest. While Meta hasn't yet been able to significantly monetize these ambitions, Zuckerberg believes they hold the key to its future growth prospects and will eventually help boost profits. The path to $3 trillion Meta has a market cap of roughly $1.96 trillion (as of this writing), so it will take a stock price increase of roughly 53% to increase its value to $3 trillion. According to Wall Street, Meta is expected to generate revenue of $195 billion in 2025, giving the stock a forward price-to-sales (P/S) ratio of 10. Assuming its P/S remains constant, Meta would need revenue of roughly $299 billion annually to support a $3 trillion market cap. Wall Street is currently forecasting growth for Meta of more than 12% annually over the coming five years. If the company attains that target, it could achieve a $3 trillion market cap as soon as 2029. For context, Meta has grown its annual revenue by 840% over the past decade and by 22% in the most recent quarter, and frequently surpassed Wall Street's growth expectations -- so those estimates are likely conservative. Furthermore, at 30 times earnings, Meta's valuation is in line with that of the S&P 500 -- yet has generated stock price gains of 719% over the past 10 years, far exceeding the S&P 500, which rose just 203%. That makes a compelling case that Meta Platforms is an unqualified buy. Do the experts think Meta Platforms is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Meta Platforms make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,019% vs. just 178% for the S&P — that is beating the market by 841.12%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,820!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Danny Vena has positions in Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends GE Aerospace and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Prediction: This Unstoppable Stock Will Join Nvidia, Microsoft, and Apple in the $3 Trillion Club Before 2029 was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 hours ago
- Yahoo
Prediction: This Unstoppable Stock Will Join Nvidia, Microsoft, and Apple in the $3 Trillion Club Before 2029
Key Points Artificial intelligence (AI) is helping Meta Platforms unlock greater efficiency. The company's digital advertising business is benefiting from these next-generation algorithms. Meta has other potential growth drivers that could fuel the next phase of its growth. 10 stocks we like better than Meta Platforms › There's been an undeniable shift over the past 20 years. During that time, technology companies have climbed the ranks of the world's most valuable companies, which was once the exclusive domain of industrial and energy concerns. For example, in 2005, ExxonMobil and General Electric were top of the class when measured by market cap, valued at $375 billion and $362 billion, respectively. Two decades later, it's the world's technology bellwethers that lead the pack. Topping the charts are three of tech's most recognizable names, which need little introduction. Artificial intelligence (AI) chipmaker Nvidia currently leads the pack at $4.3 trillion (as of this writing), with its stock recently hitting new all-time highs. Software giant Microsoft also notched a new record this week, cracking the $4 trillion mark. Rounding out the top three is iPhone maker Apple, with a market value of $3.1 trillion. With a market cap of $1.9 trillion, it might seem premature to suggest that Meta Platforms (NASDAQ: META) has been earmarked for admission in the $3 trillion club. However, the company's recent performance has been exemplary, and the stock has soared 33% so far this year (as of this writing), following 65% gains in 2024. Its winning streak appears poised to continue. The ever-increasing reach of its social media platform, ongoing leverage of digital advertising, and novel strategy for leveraging AI could combine to help Meta earn its membership in this exclusive fraternity. A digital advertising powerhouse The dawn of generative AI in late 2022 marked a pivotal point in the evolution of technology, and companies that were able to capitalize on that opportunity have reaped the rewards. Meta had already established expertise in the use of algorithms to advance its business, and generative AI took that to the next level. The company not only uses AI to surface more relevant content on its social media platforms but also provides a suite of AI-powered tools to assist merchants who use its digital advertising services. The results have been profound. In the second quarter, Meta's revenue of $47.5 billion jumped 22% year over year, driving diluted earnings per share (EPS) of $7.14 up 38%. CEO Mark Zuckerberg revealed that AI is "unlocking greater efficiency and gains across our ads system ... [driving] roughly 5% more ad conversions on Instagram and 3% on Facebook." He went on to say that "AI is significantly improving our ability to show people content that they're going to find interesting and useful." Meta's consistent user growth continues to fuel its success, as those who used one of Meta's family of social media platforms -- Facebook, Instagram, WhatsApp, or Threads -- increased 6% year over year to 3.48 billion, so its reach is unrivaled. This captive audience forms the basis of the company's digital advertising success, making it part of a triumvirate in the space. Alphabet's Google controlled an estimated 26% of the U.S. digital advertising market in 2024, while Meta gained ground with 21%, and Amazon took 14%, according to data compiled by business intelligence platform eMarketer. Meta's digital marketing is inseparable from its social media platforms, fueling its inexorable rise. The AI wildcard As the world's largest cloud infrastructure operators, Amazon Web Services (AWS), Microsoft Azure, and Google Cloud have a target market for their AI services, a luxury Meta doesn't have. To capitalize on the opportunity, the company tapped its treasure trove of data and trained a suite of homegrown, open-source, industry-favorite large language models (LLMs). The group, dubbed LLaMA (large language model Meta AI), is available via all the major cloud platforms and powers the Meta AI chatbot. Meta isn't stopping there. The company has recently been on a hiring spree, reportedly spending billions of dollars to assemble the top talent in the field of AI to develop the first "personal superintelligence." Meta has expanded beyond its social media roots into virtual reality (VR) and the metaverse, with AI being the company's latest area of interest. While Meta hasn't yet been able to significantly monetize these ambitions, Zuckerberg believes they hold the key to its future growth prospects and will eventually help boost profits. The path to $3 trillion Meta has a market cap of roughly $1.96 trillion (as of this writing), so it will take a stock price increase of roughly 53% to increase its value to $3 trillion. According to Wall Street, Meta is expected to generate revenue of $195 billion in 2025, giving the stock a forward price-to-sales (P/S) ratio of 10. Assuming its P/S remains constant, Meta would need revenue of roughly $299 billion annually to support a $3 trillion market cap. Wall Street is currently forecasting growth for Meta of more than 12% annually over the coming five years. If the company attains that target, it could achieve a $3 trillion market cap as soon as 2029. For context, Meta has grown its annual revenue by 840% over the past decade and by 22% in the most recent quarter, and frequently surpassed Wall Street's growth expectations -- so those estimates are likely conservative. Furthermore, at 30 times earnings, Meta's valuation is in line with that of the S&P 500 -- yet has generated stock price gains of 719% over the past 10 years, far exceeding the S&P 500, which rose just 203%. That makes a compelling case that Meta Platforms is an unqualified buy. Do the experts think Meta Platforms is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Meta Platforms make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,019% vs. just 178% for the S&P — that is beating the market by 841.12%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,820!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Danny Vena has positions in Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends GE Aerospace and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Prediction: This Unstoppable Stock Will Join Nvidia, Microsoft, and Apple in the $3 Trillion Club Before 2029 was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 hours ago
- Yahoo
Applied Digital (APLD) Jumps 16% on New Multi-Billion Dollar Contract
We recently published Applied Digital Corporation (NASDAQ:APLD) is one of the companies that stood stronger last week. Applied Digital grew its share prices by 16.46 percent in just the past five days of trading, as investors cheered its expanded collaboration with CoreWeave Inc. that would hike the two firms' contract to as much as $11 billion. This followed CoreWeave Inc.'s (NASDAQ:CRWV) exercise of an option to add another 150 MW of critical IT load capacity from Applied Digital Corporation (NASDAQ:APLD), on top of the 250 MW signed earlier, effectively bringing the total capacity to 400 MW. According to Applied Digital Corporation (NASDAQ:APLD), the first 100 MW facility is scheduled to be operational in the fourth quarter of the year, to be followed by a 150 MW capacity in the middle of next year, and the third 150 MW in 2027. Meanwhile, Applied Digital Corp. (NASDAQ:APLD) narrowed its net loss attributable to shareholders in the fourth quarter ending May 2025 by 16 percent to $53.9 million from $64.7 million in the same period last year. Total revenues increased by 41 percent to $38 million from $26.9 million year-on-year. While we acknowledge the potential of APLD 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 .
