Meta Platforms Inc. (META, Financial) has recently achieved record highs in its stock price following the launch of its advanced AI video model, Movie Gen, which has been hailed as a revolutionary media foundation model. This follows the release of their highly sophisticated holographic AR glasses, Orion.
As of the latest market close, Meta's stock rose by 2.26% to reach $595.94, further elevating the company's market capitalization to $1.51 trillion. This surge in stock value has propelled CEO Mark Zuckerberg to surpass Amazon founder Jeff Bezos as the world's second-richest person, following Elon Musk.
The new Movie Gen model features groundbreaking capabilities in immersive storytelling, incorporating video generation, personalized video creation, precise video editing, and audio generation. It supports high-definition video production up to 1080P and 16 seconds, alongside 45-second high-quality audio output.
However, much like its predecessor Sora, Movie Gen is not yet available for public use, as the company is refining its efficiency and exploring integration with Meta’s existing products, collaborating with professionals in the entertainment sector for a future release.
Meta's research team disclosed in a 92-page paper that the model is trained on a mix of licensed and open datasets, utilizing two foundational models: Movie Gen Video with 30 billion parameters and Movie Gen Audio with 13 billion parameters. These models excel in generating high-quality video and audio content seamlessly.
Comparative data shows that the Movie Gen Video model surpasses other mainstream video generation technologies like Runway Gen3 and LumaLabs, and holds a slight advantage over OpenAI's Sora.
In light of these advancements, investment firm JP Morgan has upgraded Meta's target stock price several times, most recently setting it at $640, acknowledging Meta's strategic investments and AI-driven progress.
Meta's impressive quarterly revenue and profit growth, significantly aided by advancements in AI, continue to exceed Wall Street predictions. The company's revenue for the second quarter of 2024 was $39.071 billion, marking a 22% increase, with net income soaring by 73% to $13.465 billion. Expectations for the third quarter project revenues between $38.5 billion and $41 billion, surpassing analyst forecasts.
