Meta Pivots from Metaverse to AI Ads, and It’s Already Boosting Revenue

Meta Platforms (META) has made headlines once again, this time not for virtual avatars or digital headsets, but for a bold pivot that could reshape how ads are made and targeted. According to The Wall Street Journal, the company plans to enable brands to create entire ad campaigns, comprising text, images, video, and audience targeting, using artificial intelligence by the end of 2025. Picture a small business owner uploading a product photo, setting a budget, and watching AI handle the rest, from ad visuals to placement on Facebook and Instagram. It’s advertising reimagined, with automation at its core.

Empowering an Already Robust Business

This shift is Meta’s real-time reinvention. Instead of pouring funds into speculative futures, Meta is doubling down on what’s working now. The rollout of tools like Generative Ads Recommendation (GEM) and Advantage+ Sales Campaigns has already helped lift ad revenue by 16% in the first quarter of 2025, reaching $42.3 billion. From an outside perspective, this appears to be a largely safe bet for Meta.

_{Meta’s ad revenue remains dominant, though it dipped slightly in the latest quarter.}

Why AI Isn’t Just Another Metaverse

The AI play comes with a layer of déjà vu. After all, Mark Zuckerberg was just as enthusiastic about the Metaverse. He spent years championing it, even renaming the company after it was established. But while the vision was vivid, the results weren’t. Reality Labs, Meta’s Metaverse division, lost $3.85 billion in Q1 2024 and continues to post heavy losses. Despite the grand promises, most users didn’t flock to immersive virtual spaces, and businesses didn’t find a reason to stay.

So what makes AI different?

First, it directly strengthens Meta’s core business: advertising, which made up 97% of its 2024 revenue. Second, AI tools are already delivering measurable results. Unlike the Metaverse, which asked users to leap into a new world, AI improves what advertisers already use every day. It’s not speculative—it’s practical. Third, the market is ready. Small and mid-sized businesses, often priced out of high-quality creative work, can now compete with larger players using AI-generated content.

Zuckerberg’s new vision may sound just as ambitious, but this time, the path is shorter, the need is clearer, and the payoff is already visible. If the Metaverse was a moonshot, AI-powered advertising is a rocket already in the sky, and gaining altitude.

Is META Stock a Buy?

The Street’s analysts see Meta Platforms as a Strong Buy, with an average META stock price target of $696.12. This implies a 4.37% upside.