This AI Pioneer Might Be Overlooking a Potential $100 Billion Market, Which Could Potentially Boost Share Prices by 67%
Diving into the ever-evolving world of technology, Meta Platforms (META 1.74%) is poised to capitalize on the vast potential of artificial intelligence (AI). Analysts like Ralph Schackart from William Blair see a whopping $100 billion opportunity for Meta, primarily driven by its AI chatbot technology. Here's how Meta could potentially skyrocket its shares by roughly 67% in the coming years.
Uncovering Meta's AI Chatbot Opportunity
Meta's been toiling away at AI chatbot tools for businesses for a couple of years. In 2023, they launched an alpha test, and later expanded it to thousands of businesses. Schackart is bullish on Meta as they expand this service to all businesses on their platform.
Meta's AI tools empower businesses to create and train their AI chatbots. These chatbots can handle customer support and sales while offering businesses a way to offload some of the load from human agents. With an impressive 200 million businesses on their apps, Meta has a substantial market to tap into.
Schackart projects an exciting future: by 2030, WhatsApp users might engage in an average of 1.6 daily conversations with business AI chatbots, amounting to a possible $45 billion revenue potential at $0.04 per chat. But if an auction were held for chatbot conversation pricing, Meta could fetch more than $100 billion from businesses.
Monetizing AI Chatbots: Meta's Strategies
Metal hasn't had much success charging businesses for advanced features in the past, but there are several strategies to unlock the value of AI chatbots:
- Leaning on Advertising: Advertising could be an effective way to monetize AI chatbots. Meta could scale the feature by incorporating click-to-message ads on Facebook and Instagram.
- Hybrid Approach: Meta might opt for a hybrid approach, blending free messaging for 72 hours with slightly increased prices for messages sent via AI chatbots after the 72-hour period.
How this Boosts Returns for Investors
Even with Meta's substantial capital expenditures (projected to be between $38 billion and $40 billion for 2024), an additional $100 billion in sales by 2030 would be a formidable addition to its revenue. Plus, as Meta lowers AI inference costs and broadens its ad categories, the profit margin is likely to expand, boosting shares by around 67%.
However, it's worth noting that business chatbots are just one of Meta's revenue opportunities. Meta's tremendous growth is far from over, and shares may very well soar even more than 67% before 2030.
In light of Meta's plans to monetize its AI chatbot service, smart investors might consider allocating funds towards this sector of finance, as investing in Meta Platforms could potentially yield significant returns. For instance, if Meta manages to fetch over $100 billion from businesses through an auction for chatbot conversation pricing, as projected by analyst Ralph Schackart, it could significantly boost the company's shares.
