After two years below trillion dollars, Facebook and Instagram parent Meta Platforms (NASDAQ: META) is back. Meta has had great financial success in the last four quarters after working hard. But I'm not buying Meta stock anymore. Meta's recent rise may seem appealing, but the company and stock have several unpleasant disadvantages.
Meta's metaverse investment isn't paying off, its social media empire may be vulnerable to the Web3 revolution, and overly optimistic investors may have inflated the stock price. In a risky period, Meta's stock looks expensive.
Today, there are many superior high-tech stock ideas. Alphabet (NASDAQ: GOOG) and International Business Machines (NYSE: IBM) have exciting AI growth potential. Let's let Meta figure out its long-term AI and metaverse strategy while I explain Alphabet and IBM's better shareholder value.
Alphabet AI outlook ABCs Alphabet, Google's parent firm, leads the AI revolution. This company has been seeking AI excellence for years. YouTube recommends videos using machine learning.
Google Photos, previously Picasa, tags and identifies people in your photos. Real-time traffic data and extensive pattern analysis, assisted by machine learning, inform Google Maps route suggestions. I could continue, but you get the point—Google has tried AI before.
The recent focus on LLMs and generative AI is fresh. Google was preparing to fight ChatGPT with its LLM platform. Google Bard became Google Gemini and was upgraded to incorporate Google Brain and DeepMind AI lessons. There are other ChatGPT alternatives, but they rarely compete with it for the generative AI crown.
Respect is due to Gemini. Over time, ChatGPT and Google Gemini will compete with greater features, better analysis, and more data format options. The important takeaway is that ChatGPT surprised the tech sector in 2021, while Google quickly released a decent competition in that category a few months later.
That ability to solve problems at the drop of a digital hat is key to my Alphabet investing thesis. Alphabet is ready for whatever the IT sector throws at it. In fact, the corporation will often drive huge sea changes like the generative AI surge.
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