advertising business

Meta Platforms’ stock fell significantly after a post-earnings report due to increased spending forecasts, particularly on AI. Despite investor concerns and a lack of a strong cloud business like peers, veteran investor Jim Cramer remains bullish. He highlighted Meta’s core advertising strength and its history of overcoming skepticism, suggesting the current downturn is a temporary setback, not a reason to sell.

Meta is betting on its new AI model, Muse Spark, to revitalize its AI market position and core advertising business. Shifting from open-source to a closed-source model, Meta aims to monetize its AI through paid developer access. While benchmarks show Muse Spark trailing some competitors, its development signifies a renewed AI focus, with significant investments in infrastructure and leadership. The company is also streamlining its workforce to support its AI initiatives, aiming to create AI-powered products for users, creators, and advertisers.