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Meta Stock Looks to Build on Record High. A New AI Unit Could Hold the Key. - Barron's

1. Meta's shares fell 0.6%, closing at $733.46 after a record high. 2. Company launches 'Superintelligence Labs' to bolster AI capabilities and talent. 3. Meta invested $14 billion in Scale AI, gaining a 49% stake. 4. AI talent recruitment includes offers up to $100 million for top researchers. 5. Delays for the 'Behemoth' AI model spark concerns about innovation pace.

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FAQ

Why Neutral?

While investments in AI are promising, immediate stock impact is limited. Historical trends show market skepticism around long-term AI strategies can temper short-term enthusiasm.

How important is it?

Ongoing AI developments are central to Meta’s long-term strategy, impacting future revenues. However, current market sentiment reflects cautious optimism.

Why Long Term?

The effectiveness of AI investments will unfold over years rather than days. Similar past developments at tech firms took time for noticeable impact.

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