Avocado and AI: How Would a New Model from Meta Platforms Influence the Bull and Bear Cases for META Stock?

Core Insights - Meta Platforms (META) is recognized as a leading stock among the "Magnificent Seven," driven by its robust cash flow from its social media business, enabling significant investments in new technologies and growth across various demographics and geographies [1][2] Business Performance - Meta has successfully monetized its vast user base, with a significant portion of the global population engaging with its platforms daily, establishing a strong competitive advantage [2] - The company exhibits strong fundamentals, showcasing high profitability and growth, with a forward earnings multiple of 23, indicating it is one of the more affordable stocks in its sector [6] AI and Future Prospects - Meta is expanding its AI initiatives, with a new large-language model (LLM) named "Avocado" set to launch next year, which is anticipated to enhance its market share and leadership in LLM development [3][4] - The Avocado model is intended to be proprietary rather than open-sourced, aiming to create a more defensible position and facilitate the development of a monetizable ecosystem of AI products [5]