Jeremy Schwartz, CIO at WisdomTree Investments, joined Benzinga's PreMarket Prep Monday to discuss Meta Platforms, Inc’s META successful "year of efficiency," which he believes was made possible by AI.
What Happened: Schwartz highlighted Meta's use of artificial intelligence as the force that enabled the company to achieve remarkable results during its "year of efficiency."
Meta reduced its workforce by 22% in 2023 while boosting revenue by 25%. The stock gained more than 175% in 2023 and CEO Mark Zuckerberg has said the increased efficiency focus will remain in place.
Schwartz told Benzinga that WisdomTree is bullish on AI's effects on the economy and expects increased productivity across the board in the next five to seven years.
The WisdomTree CIO also noted that it’s possible Google parent Alphabet, Inc. GOOGL and other big tech companies could follow in Meta's footsteps. Big tech companies can reduce their workforces and still achieve increases in output by leveraging AI, he said, adding that potential signs of future layoffs include increased infrastructure spending.
Schwartz noted that Meta’s new dividend announcement could also set the stage for other big tech names to follow a similar playbook for returning capital to shareholders.
"These big tech companies have been holding out. But it's interesting to see, you can have growth and return capital, not just through buy-backs … you can do it through dividends as well," Schwartz said.
META Price Action: Meta shares closed Monday down 3.28% at $459.41, according to Benzinga Pro.
Photo: Shutterstock.
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