The social media and technology giant Meta Platforms (NASDAQ:META) unveiled two new AI-powered video editing tools, Emu Video and Emu Edit, for Facebook and Instagram. The move is part of Meta’s efforts to enhance user engagement across its family of apps as it faces heightened competition from other social media platforms.
Emu Video generates high-resolution, four-second-long videos when given input, including text-only, photos, or images along with a description. With Emu Edit, users can easily edit videos using text prompts. It enables them to edit specific parts or the entire picture, change backgrounds, adjust colors and shapes, and more.
Notably, these new AI-powered tools are based on Emu, the company’s first foundational model for image generation.
Meta: Going All-In On AI
Meta is going all in on AI (Artificial Intelligence) to drive user engagement and, in turn, its financials. Notably, the introduction of AI functionalities into its family of apps follows Meta’s Connect conference held in September. During the conference, Meta introduced various innovative AI features, such as AI stickers and AI-powered image editing. Additionally, Meta launched Broadcast Channels and unveiled Meta AI, an advanced conversational assistant now available on WhatsApp, Messenger, and Instagram in the United States.
With Meta’s AI-driven creativity tools, the company is successfully resonating with users, as evidenced by robust engagement trends across its suite of applications. Meta CEO Mark Zuckerberg emphasized during the Q3 conference call that a staggering 3.9 billion individuals utilize at least one of Meta’s apps every month.
The company is strategically employing AI-powered features for advertisers to improve monetization. As Meta is leveraging its AI capabilities, let’s look at what analysts recommend for its shares.
Is Meta Stock Expected to Go Up?
Meta stock has risen significantly on a year-to-date basis (up over 177%). However, analysts’ average price target suggests further upside potential.
Meta Platforms stock has received 36 Buy and one Hold recommendations for a Strong Buy consensus rating on TipRanks. Further, the average META stock price target of $384.62 implies an upside potential of 15.09% from current levels.
