META Is Facing Multiple AI-Related Challenges
After Meta (META) disclosed that its head of AI Research is leaving, CNBC reported that the tech giant is facing multiple other challenges on the AI front.
Has Meta Lost Its AI Momentum?
Joelle Pineau, who was the head of Meta's AI Research department for eight years, is leaving the company, CNBC reporter Deirdre Bosa noted today. Bosa added that "other recent developments might or should have investors wondering if Meta has lost its AI edge."
Specifically, it has been eight months since Meta released a new version of its Llama AI model, while OpenAI and Alphabet (GOOG,GOOGL) have each unveiled multiple, new AI models already in 2025. Further, according to one source, Meta's AI chatbot had the lowest traffic in March among major players in the category.
A Number of Positive AI Catalysts Could Be on the Way for Meta
The company is slated to hold its first LlamaCon on April 29. At the conference, it plans to introduce its new AI initiatives, and Meta CEO Mark Zuckerberg has "teased upcoming Llama models," Bosa noted.
The Price Action of Meta Stock
In the last month, the shares have dropped 13%, while they have retreated 9% in the last three months.
While we acknowledge the potential of META, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.
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