In a CNBC segment, Paul Meeks, CIO of Harvest Portfolio Management, discussed Meta’s recent stock surge, attributing it to Mark Zuckerberg’s vision of establishing the company as the global standard for AI open-source models, particularly with its Llama initiative. Meeks expressed optimism about Meta’s growth potential despite current high valuations, suggesting that the company will effectively monetize its AI offerings as it continues to expand its user base.
In a recent segment on CNBC’s “Black Box,” Paul Meeks, CIO of Harvest Portfolio Management, discussed Meta’s impressive stock performance, which has seen a 15-session rise, reaching $721. He attributed this surge primarily to Mark Zuckerberg’s ambitious vision for Meta to become the global standard for AI open-source models. Meeks emphasized that Meta’s vast user base, with billions engaging with their apps monthly, positions the company favorably to capitalize on this opportunity, potentially leading to significant growth.
Meeks noted that while the stock’s current valuation is relatively high compared to its historical averages, it is not necessarily priced to perfection. He explained that although Meta is expected to experience slower top-line growth this year due to increased investments, the stock’s price-to-earnings ratio is competitive when compared to the broader market. He suggested that new investors should consider entering the stock, while existing shareholders should continue to hold onto their investments.
The conversation also touched on Meta’s AI initiative, specifically its open-source model called Llama, which is seen as a competitor to ChatGPT. Meeks acknowledged the uncertainty surrounding the monetization of Llama, as it is currently being utilized internally across Meta’s platforms like Facebook and Instagram. He expressed optimism that, similar to past strategies, Meta would focus on building a substantial user base before monetizing the product effectively.
Meeks highlighted the potential for Llama to serve not only consumer needs but also enterprise applications, suggesting that it could take various forms in the market. He referenced a recent announcement from a competitor in China, which demonstrated the feasibility of developing competitive AI models with minimal investment and time. This indicates that Meta’s substantial investment in AI infrastructure could yield significant returns in the long run.
In conclusion, Meeks conveyed a positive outlook on Meta’s future, driven by its strategic focus on AI and open-source models. He believes that as Meta continues to innovate and expand its user base, it will eventually find effective monetization strategies, reinforcing its position in the competitive landscape of AI technology.