This article first appeared on GuruFocus.

Citizens kept its Market Outperform rating and $900 price target on Meta Platforms (META, Financials) on Monday. This was because the firm was still making progress with its artificial intelligence-based advertising platform. The company reported that some 2 million marketers are using Meta’s AI-generated video and creative capabilities. This helps lower production costs and lets advertisers run more personalized campaigns. People pointed out that both Meta and Alphabet have said that creative considerations are responsible for around half of campaign performance. This shows how AI techniques could help ads do better. Meta’s AI business assistant and messaging-based AI agents were called out as important growth drivers since they can make interactive interactions bigger on WhatsApp, Messenger, and Instagram. The article also said that Meta’s Messaging Ads business makes roughly $10 billion a year and is likely to grow as AI features get better. The price goal was confirmed after the whole AI infrastructure sector made some big movements, like Google’s $4 billion investment in a new data center in Arkansas and its plans to reorganize its Verily life sciences company. Analysts say that Meta’s ongoing use of generative AI techniques is a key driver in keeping revenue growth going in a digital advertising market that is very competitive. Later this month, investors will look at Meta’s third-quarter profits to see if AI-driven ad solutions are still bringing in money and getting people to use them.