1 Artificial Intelligence (AI) Stock to Buy and Hold Through 2025 and Beyond

Core Viewpoint - The field of artificial intelligence (AI) is not a passing trend but has the potential to enhance corporate efficiency and profitability over the long term, making investments in strong AI companies like Meta Platforms a promising opportunity for 2025 and beyond [1] Meta Platforms' AI Angle - Meta Platforms is actively engaged in both providing AI-related services and improving its own business through AI initiatives, with its Meta AI platform aiming to compete with ChatGPT [2] - Meta AI offers a range of functionalities, including basic search queries and image generation, available for free to users with existing Facebook or Instagram accounts [2] Monetization and Engagement - Although currently free, Meta Platforms plans to monetize its AI efforts in the future, having already utilized AI to enhance user engagement on Facebook and Instagram through recommendation algorithms [3] - AI-powered video-feed recommendations have led to an 8% increase in time spent on Facebook and a 6% increase on Instagram, while companies using Meta's advertising tools have seen a 7% increase in conversions [4] Financial Performance - In the third quarter, Meta Platforms reported a 19% year-over-year revenue increase to $40.6 billion, with earnings per share rising 37% to $6.03 [4][5] - The company also recorded 3.29 billion daily active users, with increased engagement driven by AI potentially impacting revenue positively [5] Competitive Advantage - Meta Platforms benefits from a strong competitive advantage due to the network effect, making its ecosystem highly valuable as more users join [6] - This competitive edge positions Meta as a leader in the social media landscape for the foreseeable future [6] Long-term Opportunities - AI is expected to be a significant long-term growth driver for Meta Platforms, alongside other monetization avenues such as WhatsApp, e-commerce, and metaverse initiatives [7][8] - The company is currently generating robust revenue from its advertising business, but future growth may come from diversifying its monetization strategies [8] Dividend Potential - Meta Platforms has begun paying dividends, which may not be substantial yet but could enhance returns over the next decade if reinvested [9]