We recently compiled a list of the 9 AI News Updates That Analysts Are Monitoring. In this article, we are going to take a look at where Meta Platforms, Inc. (NASDAQ:META) stands against the other AI stocks analysts are monitoring.
OpenAI of ChatGPT fame has emerged as the poster child of the AI revolution. The AI models behind the famous AI assistant have, however, started to attract unwanted attention in recent months. For example, news publication The Guardian has reported that a group of major news organizations in Canada have sued the AI firm for allegedly strip-mining journalism and unjustly enriching itself by using news articles to train the popular ChatGPT software. Per the report, the suit was filed in the superior court of justice in Ontario and calls for punitive damages, a share of profits made by OpenAI from using the articles, and an injunction barring the San Francisco-based company from using any of the news articles in the future.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
OpenAI has faced similar suits in recent months but has managed to fight back without incurring financial harm. The latest suit, per the report, includes news platforms like the Globe and Mail, the Canadian Press, the CBC, the Toronto Star, Metroland Media, and Postmedia. The companies want up to C$20,000 in damages for each article used by OpenAI, suggesting a victory in court could be worth billions. As it battles these claims, OpenAI has already signed licensing agreements with a handful of media organizations, including the Associated Press wire service, NewsCorp and Condé Nast.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we selected AI stocks by combing through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A team of developers working in unison to create the company’s messaging application.
Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 235
Meta Platforms, Inc. (NASDAQ:META) engages in the development of products that enable people to connect and share with friends and family. Latest reports, published by tech news platform TechCrunch, claim that as the AI business of the company takes off, it is planning to build build a new, major, fibre-optic subsea cable extending around the world — a 40,000+ kilometer project that could total more than $10 billion of investment. Per the report, Meta will be the sole owner and user of this subsea cable — a first for the company and thus representing a milestone for its infrastructure efforts.
Overall META ranks 3rd on our list of AI stocks analysts are monitoring. While we acknowledge the potential of META as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than META but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.