Why Metaplatform Stock Is Up Today

stock meta platform (meta 2.25%) I made a profit today. The social media giant seemed to be benefiting from the expected legislation for TikTok and has also updated its Meta AI assistant by releasing the latest version of its Llama Large Language Model (LLM).

As of 1:24 PM ET, shares were up 2% on the news after rising as much as 3.7% in early trading.

Image source: Getty Images.

The meta takes advantage

For months, social media stocks like Meta have been buzzing with news about a possible ban or forced sale of TikTok, the popular China-based social media app, but the bill now seems more realistic than ever.

House Speaker Mike Johnson reportedly plans to include legislation providing aid to Ukraine and Israel that would ban TikTok or force owner ByteDance to sell its U.S. ownership.

Separately, Meta has also launched several new artificial intelligence (AI) products, showing that it will remain a contender in the generative AI space. The company has released its latest LLM, Llama 3, and an image generator that updates images in real time. These tools are included in Meta AI, a free AI assistant available for Facebook, Instagram, WhatsApp, and Messenger.

Can the meta continue to rise?

TikTok development is complex and the issue could spend years in the courts even if a ban is passed, but Meta could certainly benefit from the bill as TikTok is currently its closest competitor. Meta has invested heavily in TikTok competitor Reels to increase engagement on platforms like Facebook and Instagram.

Additionally, improvements in AI capabilities are likely to be welcomed by investors. There is no direct way for Meta to monetize its generative AI efforts, but if it can entice users to spend more time on its platform, it will increase its advertising revenue and improve its competitive advantage. As the new technology is just getting started, Meta’s investment in AI is expected to continue.