1 No-Brainer AI Stock to Buy Right Now

Core Viewpoint - Meta Platforms is positioned as a strong investment opportunity for exposure to artificial intelligence (AI), leveraging its existing business model and new AI initiatives to drive future growth [2][12]. Financial Performance - In Q2, Meta's revenue increased by 22% to $47.5 billion, with earnings per share (EPS) rising by 38% to $7.14 [6]. - Daily active users across Meta's platforms reached 3.48 billion, reflecting a 6% year-over-year growth [6]. - The company generated over $8.5 billion in free cash flow during Q2 and ended the quarter with over $47 billion in cash and marketable securities [8]. AI Integration and Strategy - Meta has integrated AI into its advertising and user experience across its platforms, enhancing efficiency and ad performance [7]. - The new standalone Meta AI app has gained significant traction, with over one billion monthly active users, and aims to deepen user engagement [11]. - Meta's capital expenditures for AI are projected to be between $66 billion and $72 billion by 2025, indicating a strong commitment to AI infrastructure [10]. Advertising and Monetization - The advertising business is performing well, with ad impressions increasing by 11% year-over-year and average ad prices rising by 9% [6]. - AI has contributed to a 5% increase in ad conversions on Instagram and a 3% increase on Facebook [7]. - Meta's expertise in creating ad-funded revenue streams positions it advantageously in the competitive landscape [11]. Investment Outlook - Despite a significant stock price increase, Meta's valuation at around 28 times earnings is considered reasonable given its revenue growth and cash flow [12]. - The combination of a profitable business model, substantial cash reserves, and a dedicated AI app presents a compelling investment case for long-term investors [12][13].