Latest news with #Schackart
Business Insider
02-05-2025
- Business
- Business Insider
Analysts' Top Communication Services Picks: Live Nation Entertainment (LYV), Roku (ROKU)
There's a lot to be optimistic about in the Communication Services sector as 2 analysts just weighed in on Live Nation Entertainment (LYV – Research Report) and Roku (ROKU – Research Report) with bullish sentiments. Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. Live Nation Entertainment (LYV) TD Cowen analyst Doug Creutz reiterated a Buy rating on Live Nation Entertainment yesterday and set a price target of $166.00. The company's shares closed last Thursday at $131.34. According to Creutz is a 5-star analyst with an average return of 16.5% and a 63.3% success rate. Creutz covers the NA sector, focusing on stocks such as Paramount Global Class B, Universal Music Group, and Warner Music Group. Live Nation Entertainment has an analyst consensus of Strong Buy, with a price target consensus of $168.56, which is a 26.4% upside from current levels. In a report issued on April 28, Susquehanna also initiated coverage with a Buy rating on the stock with a $155.00 price target. Roku (ROKU) In a report released yesterday, Ralph Schackart from William Blair maintained a Buy rating on Roku. The company's shares closed last Thursday at $67.27. According to Schackart is a 5-star analyst with an average return of 14.5% and a 59.1% success rate. Schackart covers the NA sector, focusing on stocks such as Alphabet Class C, Meta Platforms, and Vivid Seats. The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Roku with a $94.19 average price target, representing a 33.9% upside. In a report issued on April 23, JMP Securities also upgraded the stock to Buy with a $95.00 price target.
Yahoo
26-01-2025
- Business
- Yahoo
This Artificial Intelligence (AI) Innovator Could Be Sitting on a $100 Billion Opportunity That Could Send Shares Soaring 67%
Recent advances in artificial intelligence (AI) hold the potential to unlock billions of dollars in value for businesses through more effective and efficient work assisted by AI. Some of the biggest early winners in AI are the companies that make it possible to develop and train large language models, the core technology behind generative AI. But longer-term winners could be the companies that are best able to use AI to improve their businesses while helping other businesses improve their own operations. Meta Platforms (NASDAQ: META) is one of those potential long-term winners. In fact, it could be sitting on a $100 billion opportunity, according to William Blair analyst Ralph Schackart. He sees Meta acting as a key facilitator for businesses looking to use AI to interact with more customers. Here's how it could send shares soaring roughly 67% over the next few years. Meta has been working on tools to help businesses create their own AI chatbots for a couple of years now. It launched an alpha test in September 2023, and it expanded it to thousands of additional businesses a few months ago. Schackart sees the big opportunity coming as Meta expands the service to all businesses on its platform. Meta's AI tools allow businesses to create and train their own AI chatbots, which can provide customer support and facilitate sales. With over 200 million businesses on its apps, Meta has a massive addressable market to sell its AI tools. Schackart thinks many businesses will pay Meta directly for the opportunity to offload WhatsApp conversations to AI. He thinks strong adoption among businesses will lead WhatsApp users to engage in an average of 1.6 conversations with business AI chatbots per day by 2030. At an average cost of $0.04 each, that's a $45 billion revenue opportunity for Meta. He thinks if Meta held an auction for chatbot conversation pricing, it could fetch more than $100 billion from businesses. Meta has had limited success charging businesses for advanced features in the past. Its WhatsApp Business Platform, accounted for in Meta's "other revenue" line item, generates a small amount of revenue compared to its ad platform. As such, it might make more sense for Meta to monetize AI chatbots with its advertising products. Specifically, click-to-message ads on Facebook and Instagram. Using advertising to unlock the value of AI chatbots may enable Meta to scale the feature to more businesses, ultimately leading to better long-term results. AI-powered chatbots could allow businesses to process more conversations with potential customers and close more sales with lower overhead. As a result, the value of click-to-message advertising should increase as more businesses adopt and improve the technology. This is a natural way to introduce auction pricing to monetize AI chatbot conversations, even if businesses aren't paying for AI directly. Ultimately, Meta may settle on a hybrid approach. Currently, WhatsApp for Business includes free messages for conversations started via a click-to-message ad for the first 72 hours. Paying a slightly higher price for messages sent via AI chatbot after 72 hours will likely be worth it for most businesses since they won't be paying a human agent to interact with customers. Meta is already a massive company. It generated an estimated $163 billion in 2024, and analysts expect it to grow sales to $186 billion this year. Still, an extra $100 billion in sales by 2030 would be a huge addition to Meta's top line. It's worth noting that Meta is spending quite a bit to improve its artificial intelligence capabilities. Meta's capital expenditures will come in between $38 billion and $40 billion for 2024, and management said it expects significant growth in capital expenditures in 2025. Those upfront cash outlays will start showing up as depreciation expense on Meta's income statement over time, which could weigh on earnings if Meta doesn't continue to grow its top line. It's also important to note that running AI applications is relatively expensive, especially at the scale of 3 billion monthly users. Part of Meta's investments over the next few years will likely go toward bringing AI inference costs down significantly. That should make giving away AI chatbots much more profitable over time. If the opportunity turns out to be as big as Schackart estimates, $100 billion by 2030, those costs will be well worth it. Meta should see strong profit margin expansion at that scale, even with the additional costs of developing and deploying AI. If Meta maintains its current price-to-sales multiple, adding $100 billion in revenue should send shares about 67% higher. But keep in mind, business chatbots are far from the only revenue opportunity at Meta. It wouldn't be a surprise for shares to soar even more than 67% before 2030. Before you buy stock in Meta Platforms, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Meta Platforms wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $874,051!* Now, it's worth noting Stock Advisor's total average return is 937% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list. Learn more » *Stock Advisor returns as of January 21, 2025 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Adam Levy has positions in Meta Platforms. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy. This Artificial Intelligence (AI) Innovator Could Be Sitting on a $100 Billion Opportunity That Could Send Shares Soaring 67% was originally published by The Motley Fool Sign in to access your portfolio
