• Meta Platforms’ recent rally has brought its market cap close to the $2 trillion mark.

• The digital advertising giant’s upcoming earnings report could help it hit this milestone.

• Meta’s ability to deliver strong returns to advertisers with the help of AI tools could help it grow at a faster pace than the end market in the long run, paving the way for more upside.

• These 10 stocks could mint the next wave of millionaires ›

Meta Platforms (NASDAQ: META) stock has been rallying impressively of late, gaining more than 32% in the past three months amid the broader rally in technology stocks. As a result, Meta’s market cap has jumped to $1.8 trillion as of this writing on July 14, making it the sixth-largest company in the world.

Meta is slated to release its second-quarter results after the market closes on July 31. The company has been able to grow at a faster pace than the digital ad market thanks to the integration of artificial intelligence (AI) tools into its offerings, which could enable it to deliver another solid set of results later this month.

Given that Meta stock is just 11% away from entering the $2 trillion market cap club as I write this, there is a good chance it could achieve that milestone in July, driven by the tech stock rally and a healthy quarterly report.

Let’s look at the reasons why Meta stock is primed for more upside this month and in the long run.

It is worth noting that Meta’s earnings have been better than consensus expectations in each of the last four quarters. One reason is the increase in spending across its family of applications by advertisers. In the first quarter, for instance, Meta reported an impressive increase of 10% year over year in the average price per ad.

Ad impressions also increased by 5% from the year-ago period, which means the company is delivering more ads. This combination of higher pricing per ad and an increase in impressions delivered enabled Meta to report a 37% year-over-year increase in its earnings to $6.43 per share in Q1. However, investors should also note that the company has been aggressively increasing its capital expenditures (capex) to bolster its AI infrastructure.

It expects to spend $68 billion on capex in 2025, at the midpoint of its guidance range. That would be a massive increase over its 2024 capex of $39 billion. This explains why analysts are expecting Meta’s earnings to increase at a slower year-over-year pace of 13% for the second quarter to $5.84 per share. While the increased investment in AI-focused data center infrastructure is undoubtedly likely to weigh on Meta’s bottom line in the short run, the higher returns its AI investments are generating on the advertising front could help it beat the market’s bottom-line expectations. And beating expectations often sends a stock up, as investors react with excitement and optimism.

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Meta management points out that users are now spending more time on its applications thanks to AI-recommended content. In the six months that ended March 31, Meta saw the time spent on Facebook and Instagram increase by 7% and 6%, respectively. The increase in user engagement tells us why it has been able to serve more ads.

Moreover, the gains advertisers have seen on the dollars they are spending on Meta’s applications are also quite solid. A couple of months ago, Meta said it “assessed the impact of [its] new AI-driven advertising tools and found that they drive a 22% improvement in return on ad spend for advertisers. This means that for every dollar U.S. advertisers spend with Meta, they see a $4.52 return when they use [its] new AI-driven advertising tools.”

Unsurprisingly, Meta saw a 30% increase in the number of advertisers using its AI tools to create campaigns in the first quarter. So, there is indeed a solid possibility that Meta will clock healthy growth in ads delivered and the average price per ad in Q2, which could pave the way for a better-than-expected jump in its bottom line and help the company cross the $2 trillion milestone. I expect it to hit that market cap before Aug. 1.

Looking ahead, Meta expects that it will allow advertisers to completely automate the creation and execution of ad campaigns by the end of next year. As such, there is a good chance that Meta’s earnings growth could accelerate from 2026, following this year’s projected increase of 7%. Estimates are shown in the chart below.

However, there is a strong possibility that Meta’s earnings growth will outpace market expectations, thanks to AI. That’s why it won’t be surprising to see its market cap jumping to higher levels in the long run, as the digital ad market is expected to clock a robust annual growth rate of 15% through 2030, and Meta has the ability to keep growing at a faster pace than the end market.

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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy.

Prediction: This Artificial Intelligence (AI) Stock Could Hit a $2 Trillion Valuation by July 31 was originally published by The Motley Fool

A-Slip, which provides sleep analysis services using artificial intelligence (AI), and TenMines, which sells snoring relief pillows, are considered Korea’s leading sleep tech startups. Are startup CEOs getting a good night’s sleep every day. I heard about their secret to a good night’s sleep.

Lee Dong-hun, CEO of A-Slip, and Jang Seung-woong, CEO of TenMines, emphasized the improvement of a sound sleep environment in an interview with Maeil Economy on the 21st. Beyond simply creating a dark and quiet space, there is a separate “optimized sleep environment” that takes into account changes in body temperature and external environmental factors.

The recommended temperature for a good night’s sleep is 18-22℃ and the humidity is 40 to 60%. On top of that, the key is to fine-tune the lighting according to the sleep time and sleep pattern, and maintain this optimized environment throughout the sleep time.

CEO Jang said, “Various factors such as bedroom temperature, humidity, and fine dust directly affect the quality of sleep,” adding, “A smart home environment that automatically adjusts the most comfortable environment for individuals in real time through AI technology will become more important in the future.”

For example, it is difficult to sleep well if it is too hot or dry, so it is better to adjust the temperature and humidity comfortably by using air conditioners and humidifiers. Light and noise are also the enemies of a good night’s sleep. “Strong light inhibits the secretion of melatonin, a sleep hormone, preventing a good night’s sleep,” CEO Lee said. “It is desirable to sleep in a completely dark and quiet environment if possible, and you should lower your light and stay away from smartphones and TVs at least an hour before you go to sleep.”

CEO Lee is monitoring sleep conditions by installing Internet of Things (IoT) sensors in his bedroom. He explained, “We have built a smart home system that automatically turns off the light when it is recognized that it has fallen asleep and adjusts it to the appropriate temperature and humidity for bedtime.”

To this end, CEO Lee emphasized the importance of using data to accurately grasp one’s sleep condition first. “In the past, we had to attach an electroencephalogram device and undergo a complex examination at the hospital to know the sleep condition, but with the development of technology, it is possible to analyze the sleep condition simply with a mobile phone,” he said. In fact, if you use an application (app) developed by A-Slip, it captures the sound of breathing while sleeping and measures the sleep cycle, snoring, and apnea. Although it is a method of analyzing only the sound of the built-in microphone of the smartphone, the accuracy is more than 90% compared to the sleep polymorphism test, which is a professional test. According to a survey by the American Society of Sleep Medicine, one in three Americans track their sleep with an electronic device, and 68% of them changed their lifestyle after checking their sleep data.

Jang Seung-woong, CEO of TenMines, emphasized the importance of actively responding to sleep disorders. This is because various sleep disorders such as snoring and sleep apnea seriously reduce sleep quality and adversely affect health in the long run. Rather than neglecting sleep disorders, efforts are needed to improve high quality of sleep with the help of technology, CEO Jang said. “It is important to accurately identify and analyze individual sleep patterns and sleep disorders through sleep data, and then use customized solutions to solve them.”

CEO Lee also emphasized the importance of regular sleep habits, saying, “Change your sleep in your life.” Just maintaining a consistent pattern of going to bed at the same time every night and waking up at the same time in the morning can significantly improve sleep quality. “According to a sleep medicine study, adults with jagged sleep time and insufficient sleep have a 42% higher mortality rate than those with enough sleep and regular sleep,” CEO Lee said. “If sleep is an eight-hour pill, it is beneficial to take it at a fixed time.” CEO Lee is also a startup manager who often works overtime, but he is said to follow a routine that keeps a constant bedtime and weather time if possible and makes up for his lack of sleep by taking a nap. In addition, they avoid caffeine in the late afternoon and practice the habit of reading books instead of smartphones before going to bed.

사진 확대

사진 확대