Meta Stock Higher as It Goes Full Pelt on AI Ads

Shares in U.S. tech giant Meta Platforms (META) climbed higher today on reports that it aims to make advertising fully powered by AI by the end of next year.

Fully AI

In a Wall Street Journal article today, it is reported that Meta is hoping to allow advertisers to “fully create and target ads” using AI.

Sources close to Meta stated that brands would be able to feed product details and a budget into the advertising AI tool, and it would then generate imagery and text. It may even decide which Instagram or Facebook users to target in the campaign.

The AI tool would also be able to personalize ads in real time, allowing users to see different versions of the same ad.

It would be a large improvement on Meta’s current AI advertising services, which can generate variations of existing ads and carry out minor changes.

Revenue Boon

It could be a major boon for advertisers and for Meta, given that advertising accounted for over 97% of its revenue last year. It would also help protect it against any downturn from Chinese advertisers such as PDD Holdings (PDD) owned Temu in the tariff wars.

Despite those concerns, Meta reported a 16% jump in ad revenue for the first quarter of 2025, hitting $42.3 billion. AI tools like Generative Ads Recommendation (GEM) and Advantage+ Sales Campaigns helped improve ad conversions and performance across Facebook and Instagram.

The report today also builds on comments last week from Meta chief executive Mark Zuckerberg, who told the company’s annual shareholder meeting that “we want to get to a world where any business will be able to just tell us what objective they’re trying to achieve and how much they are willing to pay for each result.”

Is META a Good Stock to Buy Now?

On TipRanks, META has a Strong Buy consensus based on 41 Buy, 3 Hold and 1 Sell rating. Its highest price target is $918. META stock’s consensus price target is $696.12 implying an 7.51% upside.

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