Fintel reports that on September 15, 2023, HSBC initiated coverage of Microsoft (NASDAQ:MSFT) with a Hold recommendation. Analyst Price Forecast Suggests 16.60% Upside
After its last earnings report and subsequent jump in share price just a few months ago, Oracle (NYSE: ORCL) co-founder Larry Ellison surpassed Bill Gates on the list of the world's richest people. But Oracle's latest earnings report came up shy of many investors' expectations, a
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On Wednesday, technology leaders including Microsoft (NASDAQ: MSFT) co-founder Bill Gates and Nvidia (NASDAQ: NVDA) CEO Jensen Huang met with senators to discuss the future of AI. While corporate executives frequently make treks to Washington, D.C., to meet with lawmakers, this w
Alphabet's Google has given a small group of companies access to an early version of Gemini, its conversational artificial intelligence software, The Information reported on Thursday, citing people familiar with the matter.
Fintel reports that on September 14, 2023, Bernstein reiterated coverage of Microsoft (NASDAQ:MSFT) with a Outperform recommendation. Analyst Price Forecast Suggests 17.51% Upside
Shares of Meta Platforms (
NASDAQ:META
) have been scorching hot so far this year, now up more than 144% year-to-date. Indeed, the generative
artificial intelligence (AI) boom has been a major contributor to Meta's explosive relief rally, but it's the WhatsApp opportunity that may be one of the company's next big drivers as AI hype begins to taper off a bit. Therefore, I'm staying bullish on META alongside a vast majority of Wall Street analysts covering the company.
In recent weeks, a lot of enthusiasm has surrounded META stock for its improving position in the AI race. The company's Llama (Large Language Model Meta AI) 2 AI model is an open-source system that could be the firm's secret weapon to pull ahead in its battle against competing LLMs like
ChatGPT. Undoubtedly, the fact that it's available open source, even for commercial use, sets Meta's AI strategy apart from peers, including Microsoft (
NASDAQ:MSFT
).
Although I'm sure more AI news could keep the momentum going strong over at Meta, it's the monetization potential behind the messaging app WhatsApp that could help power shares toward all-time highs of around $380 and change. Further, introducing AI chatbots into the popular messaging app could take its growth to the next level.
WhatsApp's $19 Billion Price Tag Could Prove Too Low
Since acquiring the app back in 2014 for a lofty $19 billion, Meta hasn't really been able to turn it into any sort of meaningful cash cow. This could change moving forward as the firm looks to drive the profitability of the massive network that may have flown under the radar of investors and analysts for years. What's the catalyst? Generative AI tech.
Back in 2014, WhatsApp's price tag seemed just a bit absurd, especially given the free app wasn't exactly packed full of features, nor was it raking in the dough. What the app did have, though, is a massive userbase. Currently, WhatsApp is estimated to have as many as 2.8 billion active users. For a front-row seat to such a sizeable portion of the world population, $19 billion may prove a bargain for Meta, a firm that's made some very smart and bold M&A moves in its lifetime.
As Meta's AI capabilities (Llama 2 and beyond) improve, WhatsApp could be the medium of choice for users to interact with a broad range of LLMs. Imagine using a ChatGPT-like service on WhatsApp, the same place you interact with the everyday people in your life. In many ways, it seems like Meta could be turning WhatsApp from a simple, free messaging platform into a super app that features a broad range of services, encompassing payments and customer service.
WhatsApp: The Next Big Super App?
Undoubtedly, the concept of super apps (one app that covers a broad and differing range of services) has been mostly limited to China. Looking ahead, Meta could be in a unique and enviable position to bring super apps into their prime in the U.S., Canada, and other parts of the globe.
Indeed, firms like Apple (
NASDAQ:AAPL
) could stand in the way of such super apps, insisting that Meta have different apps for payments and other services tied to WhatsApp. In any case, I'd keep a close watch on WhatsApp over the next two years as the company increases the pace of new feature rollouts.
Most recently, Meta
brought WhatsApp Channels to over 150 countries. WhatsApp Channels allow the app to offer Telegram-like messages from influential people and other organizations. The new feature bolsters WhatsApp's social capabilities and could help it take B2C (business-to-consumer) interactions to the next level.
What is a Fair Price for META Stock?
On TipRanks, META stock comes in as a Strong Buy. Out of 43 analyst ratings, there are 41 Buys and two Holds. The
average Meta Platforms price target is $376.19, implying upside potential of 20.7%. Analyst price targets range from a low of $285.00 per share to a high of $435.00 per share.
The Bottom Line on META Stock and WhatApp's Potential
WhatsApp is getting more capable, and it's doing so at an increasing pace. I think it's just a matter of time before WhatsApp becomes so packed full of new features that its billions of users begin spending even more of their time in the app. Up ahead, look for WhatsApp to take a page right out of the playbook of super apps like China's WeChat as it looks to expand its WhatsApp Payments service.
Disclosure
Tech stocks were rising late Thursday afternoon, with the Technology Select Sector SPDR Fund (XLK) and the Philadelphia Semiconductor index each adding around 0.8%.
Tech stocks were rising Thursday afternoon with the Technology Select Sector SPDR Fund (XLK) adding 0.9% and the Philadelphia Semiconductor index advancing 0.8%.
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The Justice Department pressed its argument on Thursday that Google sought to strike agreements with mobile carriers to win powerful default positions on smartphones to dominate search in an antitrust trial that could change the future of the internet.
The Justice Department will press its argument Thursday that Google sought to strike agreements with mobile carriers to win powerful default positions on smartphones to dominate search in an antitrust trial that could change the future of the internet.
Since its founding nearly 50 years ago, Microsoft (NASDAQ: MSFT) has had monster success in tech. The software giant is the second-most valuable company in the world, with a market cap of $2.5 trillion -- only behind Apple.
Wall Street futures rose on Thursday over expectations the Federal Reserve could pause interest rate hikes in September, while investors awaited Arm Holdings' stock market debut after its IPO turned out to be the biggest since 2021.
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Earlier this year, ChatGPT became the fastest-growing consumer application in history when it amassed 100 million users in just two months. Threads by Meta Platforms broke the record shortly after, but ChatGPT still left its mark. Wall Street strategists and C-Suite executives al
Rising optimism about a pause in interest rate hikes in September lifted U.S. index futures on Thursday, while investors readied for Arm Holdings Plc's stock market debut following the biggest U.S. IPO since 2021.