Meta Platforms(META) The Motley Fool·2025-04-20 12:20Core Insights - Meta Platforms has launched new AI models based on the Llama 4 foundation model, enhancing user engagement and contributing to revenue growth [1][11] - The company experienced a 21% revenue growth in Q4 2023, driven by increased ad impressions and higher average ad prices [2][3] - Chinese advertisers significantly boosted their spending on Meta's platforms, accounting for about 11% of its revenue in the previous year [4][6] Revenue Growth - Meta's revenue growth accelerated to 25% in Q4 2023 after a challenging 2022 [3] - Chinese e-commerce companies, particularly Temu, increased their ad spending on Meta platforms, with Temu's spending rising by 318% year-over-year [5][6] - Temu's total ad spending on Meta platforms was estimated at 165.4 billion revenue [5][6] AI Developments - Meta introduced three new AI models: Maverick, Scout, and Behemoth, which are multimodal and utilize a mixture of experts architecture [8][9] - The company aims for its Llama model to become a leading AI assistant with advanced capabilities [10][11] - Behemoth, the largest model, is still in training but is already outperforming competitors on several STEM benchmarks [9] Market Challenges - The ongoing U.S.-China trade war poses short-term risks to Meta's revenue growth, particularly due to its reliance on Chinese advertisers [6][7][11] - The stock may experience volatility as the trade war continues, but Meta remains well-positioned as a leading digital marketing platform [11][12] - The forward price-to-earnings ratio for Meta is currently 20.5, indicating attractive valuation, but earnings may decline if trade tensions persist [12]