Meta Platforms shares rise driven by AI 📈🔌

Meta Platforms (META.US) has announced the launch of a team to develop AI-based products for WhatsApp, Messenger and Instagram. The company is investing in machine learning and artificial intelligence in its advertising systems. In addition,  Meta informed about success with a tool to counter the privacy changes made by Apple (those caused an estimated loss of more than $10 billion in revenue). 

Is artificial intelligence the real Meta catalyst?

•  As an initial reaction, the market received Meta's reports positively although as the Fed hike cycle continues, there may be concerns that spending will not be backed by revenue growth, similar to the 'metaverse' and news of a new tool to limit the negative impact of Apple's privacy changes will likely only be priced in if the company shows a jump in revenue growth driven by the new solution in a report;
• Meta announced the launch of Advantage+, which uses AI to automatically generate ads tailored to advertisers' needs, which could increase its customer base. Algorithms can run tests on potential ads and select the most effective, with the option to automatically change content;
• However, three independent companies told the Financial Times that entities that opt for such options will be subject to increased regulatory scrutiny. At the same time, the director of global marekting agency iProspect pointed out that every $1 spent on Advantage+ online campaigns generated a $7 return, which seems like a great result - similar to the 'pre-Apple policy era';
• Meta laid off 11,000 people in November and promised that 2023 would be "the year of efficiency." Since then, following Twitter's example, it has launched a paid subscription program for Facebook and Instagram 'Meta Verified,' with prices starting at $11.99.

Meta Platforms (META.US) shares, D1 interval. The RSI indicator is neutral, and the Momentum indicator has cooled considerably after breaking out of the peaks in January. The price has fallen down from the 71.6 Fibonacci retracement of the upward wave initiated in March 2020, the $195 level appears to be the main short-term resistance for the bulls. Source: xStation