Are meta-platforms a store of value in the face of AI headwinds?

Metaplatforms (NASDAQ:FB), the company formerly known as Facebook, is facing privacy challenges as it ramps up its ambitious metaverse-centric venture. Among those issues, the parent of social media stalwarts Facebook and Instagram is facing a lawsuit from the state of Texas over its facial recognition technology. In this episode of “The AI/ML Show” on Motley Fool Live, recorded on February contributor Jason Hall asks if the tech giant faces too many hurdles as it scales up its artificial intelligence (AI) initiatives.

Jason Hall: I asked you and Rachel Warren about Facebook. Is it an investable business? Has it become a value stock or is it a hands-off business? I have come to the conclusion that we are talking about less than 16 times earnings. I think there are a lot of really compelling reasons to consider this as an investment, and then I started to think more about it. With everything they’re trying to do and the fact that machine learning is going to be so important, especially when it’s building its metaverse, where you still have a lot more data. If you want to create truly powerful immersive environments that respond to users when they’re there, you need those systems that control them. They need to learn. I really think it will. But I think that’s really the big question that I’m starting to struggle with is our privacy. You have 50 states, the District of Columbia, right here. You have the European Union, you have the United Kingdom, you have all the Member States. You have all the different municipalities where a global company like Meta Platforms operates, and they have multiple platforms. Again, this is a consumer-oriented company. This is where people share their most personal things on Facebook without even thinking about it, and this is an area where we’ve seen huge pushback from lawmakers, privacy advocates. I’m really struggling with this in terms of, is this going to be the biggest hurdle in the future of AI in terms of user experience, consumer, businesses’ ability to find there?

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a high-end consulting service Motley Fool. We are heterogeneous! Challenging an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and wealthier.

Comments are closed.