This Artificial Intelligence (AI) Innovator, Up 557% in 2 Years, Could Be the Next Stock-Split Stock

Meta Platforms (META) has been on an impressive run, with its stock price surging 557% over the past two years. The company's increased investment in artificial intelligence (AI) has been a significant driver of this growth. Meta's AI advancements, such as Meta AI in messaging services and AI for advertisers, have contributed to improved user engagement and ad revenue. The company's ability to spend heavily on AI research has given it a competitive advantage in the market, and its open-source approach to AI development fosters a robust development ecosystem.

Meta's AI investment strategy differs from other tech giants like Google and Microsoft. The company focuses on long-term, large-scale investments, driven by CEO Mark Zuckerberg's vision of becoming the leading AI company in the world. This strategy is characterized by Meta's willingness to spend heavily on AI research and development, with expectations that costs will continue to climb. Meta's approach is unique in its commitment to growing the development ecosystem quickly and cost-effectively.

Meta's AI strategy offers several unique advantages. Firstly, it enhances user engagement by surfacing more relevant and engaging content on platforms like Facebook and Instagram, driving an 8% and 6% increase in user engagement respectively. Secondly, AI-powered ad targeting enables Meta to provide marketers with more precise targeting criteria, improving campaign outcomes. Meta's AI also handles the heavy lifting of ad creative development, testing, and campaign building, making the process more efficient for advertisers.

While Meta's AI investment strategy has driven impressive stock growth, it is essential to consider the author's core investment values. The author emphasizes a focus on sectors that generate stable profits and cash flows, such as utilities, renewable energy, and the REIT sector, over speculative ventures like AI that lack profitability. The author prioritizes investments that offer consistent, inflation-protected income, advocating for an income-focused strategy, known as the Income Method, which is particularly suited for retirement portfolios.

The author believes in capitalizing on undervaluations created by market perceptions, such as high interest rates affecting REITs. They recommend investments in funds like the Cohen & Steers Quality Income Realty Fund (RQI) for their stable yields and potential for capital gains. The author also values diversification and the adaptability of investment strategies, as seen in their interest in the XAI Octagon Floating Rate & Alternative Income Trust (XFLT) and REITs like AWP and GOOD. Furthermore, they favor reliable income-generating investments, such as Scotiabank, which offer high dividends and are supported by strong institutional stability.

In conclusion, Meta Platforms' AI investment strategy has driven impressive stock growth, making it a potential stock-split candidate. However, the author's core investment values emphasize a focus on sectors that generate stable profits and cash flows, such as utilities, renewable energy, and the REIT sector, over speculative ventures like AI. The author advocates for an income-focused strategy, known as the Income Method, which is particularly suited for retirement portfolios. Investors should consider the author's recommendations for income-focused investments, such as the Cohen & Steers Quality Income Realty Fund (RQI), the XAI Octagon Floating Rate & Alternative Income Trust (XFLT), and REITs like AWP and GOOD, as well as reliable income-generating investments like Scotiabank.