Meta is well positioned to profit from AI, which is good news for its shareholders.

• Meta may be the biggest winner from AI-improved advertising, since better targeting means more ad money.
• With 3 billion daily users, Meta has a captive audience few rivals can match.
• Giving away AI models for free pulls more people into Meta's apps, where they can be advertised to.
• Zuckerberg appears to be backing away from competing as a top-tier AI lab, a shift that plays to the company's strengths.
• Data center lease commitments look less worrying because Meta has ways out of some of them.

Outlook: A price target near $1,377 suggests plenty of room to run if the advertising payoff arrives.