Meta Platforms: Can LLaMA Drive Long-Term Stock Growth?

Core Insights - Meta Platforms is developing LLaMa, an open-source large language model (LLM) aimed at competing with ChatGPT and other AI technologies [1][2] - The current stock forecast for Meta Platforms indicates a potential upside of 18.38%, with a 12-month price target of $719.26 [1][7] Group 1: LLaMa Overview - LLaMa is a large language model trained on extensive human-generated text, enabling it to generate human-like responses [1] - Meta differentiates LLaMa by making it more open-source compared to competitors, allowing customization for various use cases, although some restrictions exist [2][3] Group 2: Financial Implications - Currently, Meta is not directly monetizing LLaMa but may generate revenue through licensing to large enterprises and increased engagement on its platforms [4][5] - The advertising business has seen a 68% rise since the beginning of 2024, partly attributed to the benefits derived from LLaMa [7] Group 3: Future Opportunities - LLaMa is expected to enhance Meta's advertising capabilities, with improved personalization leading to increased advertising revenue over time [8] - There is potential for future monetization of LLaMa, but it is likely to remain open-source, fostering a large ecosystem of applications that could drive ad revenue [9][10] - LLaMa also supports Meta's Reality Labs segment, contributing to innovations like AI-powered Ray-Ban glasses [10][11]