If you’ve got an extra $1,500 lying around, it may make sense to go for growth. If you’re a new investor who’s just getting started with self-guided investing, perhaps the many “growthy” tech plays are worth checking out at these levels. Indeed, we’re in the middle of an artificial intelligence (AI) revolution of sorts. While there will be many doubters about extended market multiples and the long-lived economic impact of the rise of AI, I’d argue that as a new and young investor, there’s also the risk of avoiding the high-tech AI plays just because of their historically stretched multiples.
Eventually, AI companies are going to have their earnings put to the test. If they stand to the occasion, the rewards could have the potential to be great. Of course, there will be firms that are full of promise with less in the way of substance.
Either way, new investors should consider the companies with sound AI strategies and, perhaps more importantly, the firms with track records of turning emerging, nascent technologies into profoundly useful applications that save clients considerable sums of cash. Indeed, it’s still hard to pinpoint just how much value AI can extract as it becomes more of a decision-maker in the agentic AI era.
First, we have Mark Zuckerberg’s ever-evolving tech firm in Meta Platforms (NASDAQ:META). As the company looks to crank up the spending for its open-source LLaMA AI model, the stakes will take things up a notch. Meta stock also recently broke its rather lengthy win streak as it sank 2.8% on Tuesday’s session. With the stock gone parabolic and AI expectations that couldn’t be higher, investors may wonder if it’s Mark Zuckerberg, a lone Magnificent Seven founder who’s still at the helm, who’s the best person to bet on.
Though Meta stock has seen cheaper days, with shares going for 30 times trailing price to earnings (P/E) at the time of writing, I still think the stock is worth going after if you’ve got an extra $1,500. It’s been showing winning hands of late. And I feel it’ll keep showing more of the same going into year’s end. As Meta also looks to AI-powered robots, things could get a lot more interesting for a firm that seemingly found more exciting things than the metaverse.
Though I believe in the metaverse, VR headsets, and AR glasses (Meta’s Orion is truly interesting), Meta has timelier projects to go for as it aims to push its latest LLaMA model to the front of the race. With Elon Musk’s latest Grok AI drawing attention this week, the race is about to get that much more intense. If you’re looking for a low-cost horse to bet on such a race, I’d say Meta’s is a great option at these levels.
Furthermore, once the trend has shifted to something else, whether it be quantum-powered AI or something extraordinary, I’d look for Zuckerberg to pivot with agility as he always tends to do. It’s his agility and ability that leads me to believe he’s worth betting on, regardless of the environment and especially on dips.