Track market-moving stories before they get noisy

Reddit is rated a BUY, favored over Meta due to its differentiated model, strong balance sheet, and accelerating profitability and cash generation. RDDT's 61% YoY revenue growth, rising ARPU, and minimal CapEx position it for scalable, high-margin expansion as human-generated content gains value in the AI era. Meta is also rated BUY; despite huge CapEx and monetization worries, launching an agentic AI model first provides a significant strategic edge.

Key Takeaways Meta recently cleared a major legal headwind.The company's Muse agentic AI agent had a breakout debut.Meta's growth trajectory is reaccelerating. Meta Reaches Landmark Lawsuit SettlementOne of the biggest headwinds for Meta Platforms’ ((META - Free Report) ) stock has been a massive, multi-year bipartisan lawsuit that accused the company of knowingly deploying addictive and harmful product features on its social media platforms. The lawsuit, which included 47 state attorneys general, Washington, D.C., and several U.S. territories, accused Meta of harmful practices that induced addictive behavior, such as algorithmic feeds that drove endless “doom scrolling” and constant push notifications that harmed the mental health of teenagers, children, and young adults.

Because state consumer protection laws allow states to seek civil monetary penalties for each violation, the lawsuit was initially seeking up to a staggering $1.4 trillion. However, in late August, Meta reached a settlement that included algorithm changes, enhanced age verification, and daily screen time caps on Facebook and Instagram for teen accounts. Meta also agreed to an $18 billion payout over ten years. Not only was the settlement far less than initially feared, but investors can also now put this bearish headwind in the rear-view mirror.

Meta Muse has Strong DebutMeta Muse is Meta’s autonomous personal artificial intelligence agent launched on September 8, 2026. Muse is an agentic AI platform that can perform real-world tasks on the user’s behalf while operating in the background across connected apps. Muse can perform tasks such as online shopping, travel booking, sending emails, and filling out complex forms. Muse can also convert Instagram reels such as recipes into actionable grocery lists. Additionally, Muse integrates with several popular services, including Spotify ((SPOT - Free Report) ), Google ((GOOGL - Free Report) ) Gmail, and OpenTable. Wednesday, Meta shares spiked after the company said Muse usage has “blown way past our projections,” with users engaging 10x more than its test cohorts. Muse also reached the top 5 in the App Store in under 24 hours, proving that Meta’s consumer AI push is beginning to bear fruit.

Meta Earnings Growth ReturnsIn 2025, Meta’s annual earnings growth slowed for the first time in three years. However, Zacks Consensus Estimates suggest a return to annual earnings growth in 2026 and 2027.

Image Source: Zacks Investment Research

Bottom Line

After a successful agentic AI debut and a favorable, high-stakes multi-year legal settlement, Meta Platforms has finally turned the corner. With core regulatory risks now in the rearview mirror and new revenue catalysts taking hold, Meta is well-positioned to restore earnings growth and reinforce its technology leadership role.

9.9.2026 22:17

Index Dow Jones -0,77 % na 52381,08 b. S&P 500 -0,48 % na 7636,49 b. Nasdaq Composite -0,64 % na 26253,34 b.

Ve středeční seanci americké indexy zamířily jižním směrem a index Dow Jones si odepsal -0,77% a širší index S&P 500 uzavřel také korekcí o -0,48%. Investory  a celý svět tak nyní trápí nárůst cen ropy, který oživil obavy, že vyšší náklady na energie by mohly udržet inflaci na vysoké úrovni a přesvědčit centrální banky k zpřísnění politiky. Lehká ropa WTI podpořena eskalujícím konfliktem mezi USA a Iránem posílila o 3,7% a dostala se k úrovni 96,5 USD/barel a to i s podporou mírně oslabujícího dolaru na páru s eurem, který korigoval o -0,07% tj. 1,1630 USD/EUR. Celkem slušně se během seance dařilo žlutému kovu, který sahal k 0,8%, ale nakonec zlato zisky korigovalo a žlutý kov si zapsal 0,15% tj. k úrovni 4 446 USD/Troy. unci. Na celkovém poklesu indexu měl dnes největší zásluhu sektor Průmysl se ztrátou -1,5%, dále Zbytná spotřeba -1,4% a také Utility s -1,2%. Většímu poklesu indexu byl dnes největší brzdou sektor Energie se ziskem 1,1%. 

Index S&P 500 -0,48 % na 7636,49 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Energie +1,1 % Průmysl -1,5 % Informační technologie -0,2 % Zbytná spotřeba -1,4 % Komunikační služby -0,2 % Utility -1,2 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Datadog (DDOG) +7,2 % Casey's General Stores (CASY) -14 % Meta Platforms (META) +6,6 % Vertiv Holdings (VRT) -9,6 % Fair Isaac Corp (FICO) +5,4 % Charter Communications (CHTR) -8,1 % Hewlett Packard Enterprise (HPE) +5,1 % Comcast Corp (CMCSA) -6,6 % HCA Healthcare (HCA) +4,9 % Cooper Cos (COO) -6,2 %
Luboš Bedrník
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Prohlášení

Meta Platforms stock is soaring as the social media giant touts early signs of success with a new AI agent.

In addition to being the founder and CEO of Meta Platforms (META +6.11%), Mark Zuckerberg is the social media company's largest individual shareholder, owning about 13% of the company. That means his wealth is heavily tied to Meta's stock performance, which has been trending up over the past few weeks.

Meta stock saw a mini rally from Aug. 31 through Sept. 4, gaining 8%. That increased Zuckerberg's net worth from $206 billion to $219 billion, according to Bloomberg -- not bad for a week's work. Meta had been having a rough year, but a few pieces of good news have sparked a partial recovery.

Image source: The Motley Fool.

Meta just released a new AI model On Sept. 2, Meta released Muse Spark 1.3, an artificial intelligence (AI) model designed for coding, agentic, and multi-agent workflows. It performed well on benchmark tests, with scores in the same range as GPT 5.6 Sol and Opus 5, two of the top models from OpenAI and Anthropic, respectively.

Meta had to delay the release of an AI model that was originally set for March 2026, primarily because it didn't measure up to rival models. The fact that it has now released several Muse Spark models and that the latest compares well with models from top AI labs signals that the social media giant is becoming increasingly competitive in the AI race.

These models are also notable as Meta's first paid API models, starting with Muse Spark 1.1, released on July 9. Meta's standard rates are $1.25 per million input tokens and $4.25 per million output tokens, significantly lower than OpenAI and Anthropic. With Muse Spark 1.3, Meta isn't just competing on price anymore. It has lower prices and a comparable model.

The spending fears may have been an overreaction Much of Meta's recent slump has been because of its AI infrastructure spending. It's guiding for capital expenditures (capex) of $130 billion to $145 billion in 2026, and its spending has drained most of its free cash flow (FCF). It reported FCF of $784 million in the second quarter of 2026, down from $12.4 billion in the first quarter.

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The concern was that Meta's AI spending wouldn't translate into revenue, similar to what happened with the metaverse. However, on July 1, the social media company announced Meta Compute, a cloud business that will sell excess compute to outside customers.

As part of that initiative, Meta plans to double its infrastructure capacity from 7 gigawatts (GW) to 14 GW next year. Meta is also starting production this month on Iris, its own custom AI chip built with Broadcom. By making its own chips, Meta can lower its costs and increase its margins with Meta Compute.

Meta hasn't completely recovered yet Although Zuckerberg's net worth increased by $13 billion, he's still worth less than he was at the beginning of the year. Meta has dropped about 7.1% year-to-date through Sept. 8.

Meta isn't without its risks. It has faced legal issues this year, including a child-safety lawsuit, which it settled for up to $18 million last month. Its significant capex could also become an issue if the AI boom slows.

That said, Meta remains one of the most successful tech companies, and revenue increased 28% year over year to $60.8 billion in Q2 2026. The company is also one of the cheaper AI stocks, trading for just 20 times forward earnings, which could look like a bargain if its infrastructure spending pays off.

Meta's AI Agent Muse Takes Aim at Google and Anthropic Summary

Meta’s new Muse AI agent could deepen user engagement and create new monetization opportunities as the company expands its AI strategy

Meta Platforms (META) is positioning its new Muse AI agent as another way to deepen engagement across its services while opening potential paths to future revenue growth.

Meta stock rose 5% after the news.

Muse is designed to help users carry out tasks based on longer-term objectives. The system can work with selected applications and services, while Meta uses a separate virtual machine to keep personal information isolated during those interactions.

The product enters an increasingly competitive AI assistant market that includes Google's Gemini and Anthropic's Claude. Analysts say Meta could benefit from its large user base and access to proprietary data as it works to build regular usage around Muse.

KeyBanc analyst Justin Patterson said user engagement will be an early measure of the product's progress, with monetization potentially developing later. Morgan Stanley analyst Brian Nowak also sees room for Meta to combine its applications and personalized data with AI capabilities.

The strategy comes as Meta continues spending heavily on artificial intelligence. Analysts expect those investments to support engagement, new products and longer-term monetization, although the spending could weigh on free cash flow before those benefits materialize.

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

Click for the complete disclosure

Shares of Meta Platforms (META +6.11%) rallied Wednesday morning, gaining as much as 7.2%. As of 12:05 p.m. ET, the stock was still up 6.5%.

The catalyst that sent the social media and artificial intelligence (AI) specialist higher was the launch of an AI agent for the masses.

Image source: The Motley Fool.

A new way to make money In a blog post published late on Tuesday, Meta introduced Muse, which the company describes as "the world's first personal AI agent built for everyone." The capabilities of Muse go beyond those of simple chatbots, allowing the agent to complete more complex tasks. Users can communicate with Muse using simple commands, instructing the agent to send emails, schedule appointments, make online purchases, or book dinner reservations.

Muse is connected to Facebook, Instagram, and WhatsApp, giving the agent insight into the user. It can also be linked to a host of third-party apps, including OpenTable, Ticketmaster, Spotify, and Shopify, among others.

Meta will offer both free and paid versions of the agent. The free version will limit usage, but those wanting more can upgrade to either the $20 or $100 tier, depending on usage. Muse will be available to users 18 years and older in the U.S. and can be downloaded from multiple app stores, via WhatsApp, or at the muse.ai website beginning on Tuesday. Later this year, the company will introduce the Muse Confidential Virtual Machine (VM), which will encrypt data accessible only to the user. The company ensures "Not even Meta can access it."

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Investors are betting that this will mark a new profit center for Meta. More than 3.6 billion people accessed one of the company's platforms in June, giving Meta a massive target market. If only a small percentage of the company's overall user base subscribes to Muse, the company could generate a notable increase in its revenue.

Even after today's rally, Meta is selling for less than 25 times earnings, an attractive price for a company with so many ways to win.

Danny Vena, CPA has positions in Meta Platforms and Shopify. The Motley Fool has positions in and recommends Meta Platforms, Shopify, and Spotify Technology. The Motley Fool has a disclosure policy.

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Listen below or on the go on Apple Podcasts and Spotify

Insider assigns a 10%+ chance AI eliminates us in a decade. (0:16) U.S. bans Canadian booze, motorcycles and dairy. (1:36) Meta rallies after unveiling agent Muse. (2:20)

This is an abridged transcript of the podcast:

Our top story so far, it was nice while it lasted.

AI could potentially cause catastrophic harm to humanity within the next decade, with Anthropic’s alignment work still lacking a clear solution for the risks posed by increasingly capable systems, according to Evan Hubinger, Alignment Science Lead at Anthropic (ANTHRO).

Hubinger said in a post on X that he "earnestly" believes AI could kill all humans, putting his personal estimate of the probability at more than 10% within the next decade.

He said Anthropic is “trying its best,” but that the company does not yet have a plan to solve alignment for superintelligence and is not clearly on track to do so.

In addition, Anthropic researcher Jacob Coxon publicly resigned.

"I spent the last three years doing pretraining research at both OpenAI and Anthropic," Coxon posted. "Neither company is acting responsibly. They are racing straight to self-improving superintelligence and gambling with our lives."

Coxon warned that there will soon be "superhuman systems that can hack anything, revolutionize any field overnight, and acquire real power and resources."

"At OpenAI, many have not deeply internalized the civilizational stakes," he said. "At Anthropic, the stakes are well-understood, but they are locked in a race to get there first - they believe no one else will act responsibly, so they must do it themselves, despite the risk."

"The people building AI earnestly believe that it could kill us all by the end of the decade," Coxon warned.

Looking to geopolitics, three weeks until bootlegging starts back up at the Canadian border.

The United States imposed sweeping import restrictions on Canadian alcoholic beverages, motorcycles, and dairy products (the three Cs of Carling, choppers and calcium), escalating the trade war.

The import bans, which go into effect on Sept. 29, came after Canada's own retaliatory tariffs on U.S. goods took effect after midnight on Tuesday.

The U.S. bans spirits, including Canada’s famous whiskies, and beers. The dairy ban covers whey protein, invert molasses, cane molasses and non-alcoholic beer (somehow). In addition to the import bans, several cheese products were placed on a list facing a 50% tariff.

So, no more Seven & Sevens, folks. You’ll have to make do with Sazerac & Sprite.

Among active stocks, Meta Platforms (META) is the top S&P gainer after unveiling its standalone AI agent Muse, which has yet to weigh on its view of humanity.

KeyBanc analyst Justin Patterson says if “Muse can build a monthly (and ideally, daily or weekly) audience in the hundreds of millions over the coming months” it would be a success, with engagement the initial barometer and “monetization following over time.”

Casey's General Stores (CASY) is the biggest S&P decliner after a Q2 earnings beat failed to match more high-flying expectations. But the sell-side is coming to its defense.

Jefferies analyst Corey Tarlowe recommended buying weakness on continued comparable sales growth, margin expansion and an unchanged outlook.

Chewy (CHWY) is choppy after it boosted its full-year outlook but also reported a meaningful decline in liquidity. Free cash flow declined by 15.5%, while cash and cash equivalents tumbled 29%.

And Jersey Mike's Subs (JMKE) issued its first earnings report as a public company, with same-store sales up 2.3% in Q2.

CEO Charlie Morrison said an acceleration in comps has “continued into the third quarter as we seek to broaden our consumer base, grow our digital channels, bring thoughtful innovation to the market, and, of course, continue to deliver on our vision of being the world’s most beloved destination for authentic sub sandwiches.”

And in other news of note, NASA is seeking proposals to develop technologies needed to establish a sustained human presence near the moon’s South Pole, with a focus on generating power, extracting oxygen and producing materials beyond Earth.

The agency announced the solicitation as part of its effort to close critical infrastructure gaps that could hinder long-duration lunar missions. NASA is inviting proposals from private companies, academic institutions and nonprofit organizations, along with international partners participating through U.S.-led teams.

The five tech areas it's focusing on are vertical solar arrays, oxygen extraction, radioisotope nuclear generators, manufacturing in space and innovative nanomaterials.

And the NFL season kicks off tonight, with a rematch of the Seahawks-Patriots Super Bowl, putting DraftKings (DKNG) and FanDuel (FLUT) in focus.

In anticipation of that, privately held Fanatics (FANA) has launched a unified mobile app that combines its sportsbook, online casino and prediction-market products in a bid to become a broader super app for sports fans.

Analysts have noted that Fanatics is carving out notable sports betting market share in several states as it offers popular betting promotions that tie into its apparel business.

So far, no prediction market is available for when the first NFL game on the moon will be played.

Focus Partners Advisor Solutions LLC lowered its stake in Meta Platforms, Inc. (NASDAQ:META – Free Report) by 5.8% in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 33,983 shares of the social networking company’s stock after selling 2,104 shares during the quarter. Focus Partners Advisor Solutions LLC’s holdings in Meta Platforms were worth $19,143,000 at the end of the most recent reporting period.

A number of other institutional investors also recently modified their holdings of META. RHL Group LLC bought a new stake in Meta Platforms in the 4th quarter valued at about $28,000. Strategic Wealth Advisors LLC bought a new position in Meta Platforms in the fourth quarter worth approximately $29,000. Advantage Trust Co acquired a new stake in Meta Platforms in the second quarter valued at approximately $28,000. Axiom Investment Management LLC acquired a new stake in Meta Platforms in the first quarter valued at approximately $36,000. Finally, Safe Harbor Fiduciary LLC bought a new stake in shares of Meta Platforms during the fourth quarter valued at approximately $42,000. Institutional investors and hedge funds own 79.91% of the company’s stock.

Meta Platforms Stock Down 0.5% META opened at $613.48 on Wednesday. Meta Platforms, Inc. has a fifty-two week low of $520.26 and a fifty-two week high of $790.80. The firm has a market capitalization of $1.56 trillion, a P/E ratio of 23.11, a PEG ratio of 1.07 and a beta of 1.25. The company’s 50-day moving average is $598.23 and its 200 day moving average is $608.68. The company has a debt-to-equity ratio of 0.32, a current ratio of 2.23 and a quick ratio of 2.23.

Meta Platforms (NASDAQ:META – Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The social networking company reported $6.18 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $7.19 by ($1.01). The firm had revenue of $60.80 billion during the quarter, compared to the consensus estimate of $60.22 billion. Meta Platforms had a return on equity of 33.18% and a net margin of 29.83%.The company’s revenue for the quarter was up 28.0% on a year-over-year basis. During the same period in the previous year, the company posted $7.14 earnings per share. Research analysts expect that Meta Platforms, Inc. will post 28.17 earnings per share for the current fiscal year. Analyst Ratings Changes Several analysts recently issued reports on the stock. Raymond James Financial lifted their price target on shares of Meta Platforms from $825.00 to $850.00 and gave the company a “strong-buy” rating in a research report on Tuesday, July 21st. TD Cowen dropped their price objective on shares of Meta Platforms from $800.00 to $750.00 and set a “buy” rating on the stock in a research note on Thursday, July 30th. Barclays reduced their price objective on shares of Meta Platforms from $830.00 to $780.00 and set an “overweight” rating for the company in a report on Thursday, July 30th. Mizuho set a $750.00 target price on shares of Meta Platforms in a report on Thursday, July 30th. Finally, UBS Group dropped their price target on shares of Meta Platforms from $766.00 to $715.00 and set a “buy” rating on the stock in a research report on Thursday, July 30th. Four analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating and nine have assigned a Hold rating to the company. According to MarketBeat.com, Meta Platforms has a consensus rating of “Moderate Buy” and a consensus price target of $785.22.

Get Our Latest Analysis on META

More Meta Platforms News Here are the key news stories impacting Meta Platforms this week:

Positive Sentiment: Meta launched Muse, a personal AI agent that can interact with Facebook, Instagram and third-party applications to perform tasks such as sending emails, booking travel, shopping and making payments. The product includes free and paid subscription tiers, offering a potential new revenue stream beyond digital advertising. Meta launches AI agent that can access other apps to send emails, make payments Positive Sentiment: The rollout follows the release of Muse Spark 1.3, a model aimed at coding and extended agentic tasks. Investors viewed the development as evidence that Meta’s substantial AI investment could eventually generate financial returns; Bank of America reportedly continues to see meaningful upside in the stock. Meta stock jumps 4% after Muse Spark 1.3: why BofA still sees 32% upside Positive Sentiment: Meta and Panmnesia proposed a data-center architecture designed to connect computing resources more tightly for extremely large AI models. The initiative supports Meta’s strategy of building extensive AI infrastructure and could improve long-term computing efficiency. One Chip, One Datacenter: Meta and Panmnesia Extend Tight Coupling Beyond the Rack with CXL Neutral Sentiment: Analysts and investors remain divided over Meta’s large AI infrastructure spending, reportedly including a potential $130 billion capital-expenditure commitment. Strong advertising growth and user monetization support the investment case, but the scale of spending raises execution and return-on-investment concerns. Wall Street Keeps Asking How Much Meta Will Spend Negative Sentiment: Muse increases Meta’s exposure to privacy, security and consumer-trust concerns because it can access sensitive information and act across other applications. Reports noted internal concerns about potential misuse or mishandling of personal data, which could increase regulatory and reputational risks. Meta pushes into personal AI agents as company faces public reckoning over privacy and safety Negative Sentiment: Meta faces continuing legal pressure, including a reported lawsuit alleging facial-recognition data was used to train smart-glasses systems. Separately, the company’s chief accounting officer sold 3,240 shares under a pre-arranged Rule 10b5-1 plan; the planned nature of the sale reduces its significance, but insider selling may weigh modestly on sentiment. Insider Transactions at Meta Platforms In other news, CFO Susan Li sold 9,196 shares of the company’s stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $550.61, for a total value of $5,063,409.56. Following the completion of the transaction, the chief financial officer directly owned 13,186 shares of the company’s stock, valued at $7,260,343.46. This represents a 41.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Javier Olivan sold 3,348 shares of the stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $600.97, for a total value of $2,012,047.56. Following the sale, the chief operating officer directly owned 9,498 shares of the company’s stock, valued at $5,708,013.06. The trade was a 26.06% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 36,227 shares of company stock worth $21,205,509. 13.53% of the stock is owned by insiders.

Meta Platforms Company Profile (Free Report)

Meta Platforms, Inc develops technologies that help people connect, communicate and build communities online. The company’s principal products include Facebook, Instagram, Messenger, WhatsApp and Threads, which enable social networking, messaging, content sharing and digital communication.

Meta generates most of its business through advertising displayed across its family of apps. It also develops artificial intelligence technologies, business messaging tools and hardware and software through its Reality Labs division, including Quest virtual- and mixed-reality devices and related experiences.

The company was founded as Facebook in 2004 by Mark Zuckerberg and was renamed Meta Platforms in 2021 to reflect its broader focus on building the metaverse.

Featured Articles Five stocks we like better than Meta Platforms Tesla’s Robotaxi Launch Wasn’t the Moment Investors Expected Despite Post-Earnings Drop, Wall Street Analysts Eye New Highs for Broadcom Stock Morgan Stanley Eyes Good Things Ahead for Meta After $18 Billion Legal Settlement Q3 Earnings Could Be the Catalyst the Market Has Been Waiting For Want to see what other hedge funds are holding META? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Meta Platforms, Inc. (NASDAQ:META – Free Report).

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Mark Zuckerberg shared on a podcast how he is using Muse, Meta's new AI agent. Bloomberg/Getty Images Mark Zuckerberg is testing Meta's new personal AI agent with a decidedly low-stakes assignment: helping him bake with his 3-year-old daughter.

Speaking on the "Sources" podcast released on Tuesday, the Meta CEO said he set up the agent, called Muse, to plan a baking project for them every weekend.

Its job is to pick something manageable for a toddler and an adult who knows little about baking, then use a service such as Instacart to make sure the ingredients are ready.

The early verdict? Muse may need to adjust its difficulty settings.

"Cake pops, really difficult, surprisingly difficult," Zuckerberg said. "Don't start with cake pops."

Zuckerberg said he reports back after each project so the agent can learn what worked and what didn't.

"You give it projects, or you give it goals," Zuckerberg said. "And then it just works, and it works 24-7, and it doesn't stop until it's helped achieve the goal."

You can see Zuckerberg's comments below:

The example reflects one of Meta's broader claims about Muse. Unlike a chatbot that simply responds to a prompt, it is designed to pursue longer-term tasks, work in the background, and retain information about a user's preferences.

He said he is also using Muse for other family-related tasks.

The agent watches for mountain-climbing permits for his older daughter and alerts him when one becomes available. It also created a guide to "Civilization" — a video game about building societies — for another of his daughters, then suggested turning it into a history lesson.

Away from parenting, Zuckerberg uses Muse to review footage from cameras in his MMA gym. Its feedback can be blunt: "It looks like you really gave up," he said the agent once told him.

"I was like, yeah, I did. I was really tired right there," Zuckerberg said.

Meta plans to offer Muse with what Zuckerberg described as a large free allowance — about 100 million tokens a week — alongside a paid subscription option.

The company says the agent could eventually help users run small businesses, manage ad campaigns, and handle other tasks that require access to outside services.

That ambition requires users to trust Muse with sensitive data and account access. Zuckerberg said Meta built a confidential virtual-machine system that the company itself cannot inspect, along with monitoring agents and approval prompts for actions such as payments and sending emails.

For now, Muse's assignment in Zuckerberg's household has exposed a potential limitation of AI assistants: they can organize the ingredients, but they may not know that cake pops are an ambitious place to start.

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Georgia is a Business News Fellow at Business Insider's London office.Before joining Business Insider, she worked at Japan's largest newspaper, The Yomiuri Shimbun, and interned at the Financial Times. She is an NCTJ-qualified journalist with a degree in Philosophy from the University of Birmingham.

Theron Mohamed You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

Theron Mohamed is a London-based correspondent on the International team at Business Insider. His coverage spans finance, investing, wealth, markets, and the economy.Theron joined BI in 2019 as a reporter at Markets Insider and rose to the rank of correspondent before moving to the Trending team then the broader International team. He previously covered tech, media, and telecom stocks for Investors Chronicle magazine and had a brief stint on the Financial Times' Data team. He interned at the Wall Street Journal in New York where he primarily wrote for Heard on the Street.Theron has freelanced for The Independent, The Telegraph, WIRED, and several smaller publications. He holds an undergraduate degree in geography from the London School of Economics, and a master's degree in journalism from Columbia University.Theron often covers Warren Buffett, Michael Burry, and other elite investors. He also writes about the world's wealthiest people and shares financial advice from all manner of rich and successful people.Email Theron at [email protected] and follow him on X @theron_mohamed.

Meta AI Mark Zuckerberg More Big Tech

Global Retirement Partners LLC purchased a new stake in shares of Meta Platforms, Inc. (NASDAQ:META – Free Report) in the second quarter, according to its most recent disclosure with the SEC. The firm purchased 68,813 shares of the social networking company’s stock, valued at approximately $38,762,000.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Auto Owners Insurance Co boosted its holdings in Meta Platforms by 76,587.7% in the fourth quarter. Auto Owners Insurance Co now owns 105,292,277 shares of the social networking company’s stock valued at $69,502,379,000 after purchasing an additional 105,154,977 shares during the last quarter. State Street Corp grew its position in shares of Meta Platforms by 5.1% during the fourth quarter. State Street Corp now owns 90,841,345 shares of the social networking company’s stock worth $59,963,463,000 after buying an additional 4,395,763 shares in the last quarter. Geode Capital Management LLC increased its stake in shares of Meta Platforms by 1.7% in the fourth quarter. Geode Capital Management LLC now owns 52,806,712 shares of the social networking company’s stock worth $34,734,628,000 after buying an additional 878,396 shares during the last quarter. Capital World Investors increased its stake in shares of Meta Platforms by 0.8% in the fourth quarter. Capital World Investors now owns 39,558,637 shares of the social networking company’s stock worth $26,112,735,000 after buying an additional 310,947 shares during the last quarter. Finally, Morgan Stanley boosted its stake in Meta Platforms by 2.2% during the 4th quarter. Morgan Stanley now owns 37,553,102 shares of the social networking company’s stock valued at $24,788,429,000 after acquiring an additional 823,883 shares during the last quarter. 79.91% of the stock is owned by hedge funds and other institutional investors.

Meta Platforms News Summary Here are the key news stories impacting Meta Platforms this week:

Positive Sentiment: Meta launched Muse, a personal AI agent that can interact with Facebook, Instagram and third-party applications to perform tasks such as sending emails, booking travel, shopping and making payments. The product includes free and paid subscription tiers, offering a potential new revenue stream beyond digital advertising. Meta launches AI agent that can access other apps to send emails, make payments Positive Sentiment: The rollout follows the release of Muse Spark 1.3, a model aimed at coding and extended agentic tasks. Investors viewed the development as evidence that Meta’s substantial AI investment could eventually generate financial returns; Bank of America reportedly continues to see meaningful upside in the stock. Meta stock jumps 4% after Muse Spark 1.3: why BofA still sees 32% upside Positive Sentiment: Meta and Panmnesia proposed a data-center architecture designed to connect computing resources more tightly for extremely large AI models. The initiative supports Meta’s strategy of building extensive AI infrastructure and could improve long-term computing efficiency. One Chip, One Datacenter: Meta and Panmnesia Extend Tight Coupling Beyond the Rack with CXL Neutral Sentiment: Analysts and investors remain divided over Meta’s large AI infrastructure spending, reportedly including a potential $130 billion capital-expenditure commitment. Strong advertising growth and user monetization support the investment case, but the scale of spending raises execution and return-on-investment concerns. Wall Street Keeps Asking How Much Meta Will Spend Negative Sentiment: Muse increases Meta’s exposure to privacy, security and consumer-trust concerns because it can access sensitive information and act across other applications. Reports noted internal concerns about potential misuse or mishandling of personal data, which could increase regulatory and reputational risks. Meta pushes into personal AI agents as company faces public reckoning over privacy and safety Negative Sentiment: Meta faces continuing legal pressure, including a reported lawsuit alleging facial-recognition data was used to train smart-glasses systems. Separately, the company’s chief accounting officer sold 3,240 shares under a pre-arranged Rule 10b5-1 plan; the planned nature of the sale reduces its significance, but insider selling may weigh modestly on sentiment. Insider Transactions at Meta Platforms In other Meta Platforms news, CTO Andrew Bosworth sold 7,848 shares of the business’s stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $558.00, for a total transaction of $4,379,184.00. Following the completion of the transaction, the chief technology officer owned 828 shares in the company, valued at approximately $462,024. The trade was a 90.46% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Susan J. Li sold 9,196 shares of the stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $550.61, for a total transaction of $5,063,409.56. Following the completion of the transaction, the chief financial officer owned 13,186 shares of the company’s stock, valued at $7,260,343.46. This represents a 41.09% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 36,227 shares of company stock worth $21,205,509 in the last quarter. 13.53% of the stock is currently owned by corporate insiders. Analyst Ratings Changes Several equities research analysts have recently weighed in on the stock. Raymond James Financial boosted their target price on shares of Meta Platforms from $825.00 to $850.00 and gave the stock a “strong-buy” rating in a research report on Tuesday, July 21st. Weiss Ratings lowered Meta Platforms from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday, June 26th. KeyCorp reduced their price objective on Meta Platforms from $790.00 to $780.00 and set an “overweight” rating on the stock in a research note on Thursday, July 30th. Guggenheim reaffirmed a “buy” rating and issued a $800.00 price objective on shares of Meta Platforms in a report on Tuesday, July 28th. Finally, BNP Paribas Exane initiated coverage on shares of Meta Platforms in a research report on Tuesday, June 2nd. They issued an “outperform” rating on the stock. Four analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating and nine have issued a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $785.22.

View Our Latest Analysis on Meta Platforms

Meta Platforms Price Performance Shares of NASDAQ META opened at $613.48 on Wednesday. The company has a debt-to-equity ratio of 0.32, a current ratio of 2.23 and a quick ratio of 2.23. The firm has a market capitalization of $1.56 trillion, a PE ratio of 23.11, a P/E/G ratio of 1.07 and a beta of 1.25. Meta Platforms, Inc. has a 1-year low of $520.26 and a 1-year high of $790.80. The business’s fifty day moving average price is $598.23 and its two-hundred day moving average price is $608.68.

Meta Platforms (NASDAQ:META – Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The social networking company reported $6.18 earnings per share (EPS) for the quarter, missing the consensus estimate of $7.19 by ($1.01). Meta Platforms had a net margin of 29.83% and a return on equity of 33.18%. The firm had revenue of $60.80 billion for the quarter, compared to analyst estimates of $60.22 billion. During the same period last year, the firm posted $7.14 EPS. The business’s revenue was up 28.0% compared to the same quarter last year. On average, research analysts expect that Meta Platforms, Inc. will post 28.17 EPS for the current year.

Meta Platforms Profile (Free Report)

Meta Platforms, Inc develops technologies that help people connect, communicate and build communities online. The company’s principal products include Facebook, Instagram, Messenger, WhatsApp and Threads, which enable social networking, messaging, content sharing and digital communication.

Meta generates most of its business through advertising displayed across its family of apps. It also develops artificial intelligence technologies, business messaging tools and hardware and software through its Reality Labs division, including Quest virtual- and mixed-reality devices and related experiences.

The company was founded as Facebook in 2004 by Mark Zuckerberg and was renamed Meta Platforms in 2021 to reflect its broader focus on building the metaverse.

Featured Stories Five stocks we like better than Meta Platforms Tesla’s Robotaxi Launch Wasn’t the Moment Investors Expected Despite Post-Earnings Drop, Wall Street Analysts Eye New Highs for Broadcom Stock Morgan Stanley Eyes Good Things Ahead for Meta After $18 Billion Legal Settlement Q3 Earnings Could Be the Catalyst the Market Has Been Waiting For Want to see what other hedge funds are holding META? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Meta Platforms, Inc. (NASDAQ:META – Free Report).

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Bank of New York Mellon Corp lessened its stake in Meta Platforms, Inc. (NASDAQ:META – Free Report) by 2.3% during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 13,833,621 shares of the social networking company’s stock after selling 320,215 shares during the period. Meta Platforms comprises approximately 1.3% of Bank of New York Mellon Corp’s investment portfolio, making the stock its 10th largest holding. Bank of New York Mellon Corp owned 0.55% of Meta Platforms worth $7,792,340,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also made changes to their positions in the company. RHL Group LLC acquired a new position in shares of Meta Platforms in the fourth quarter worth about $28,000. Advantage Trust Co purchased a new position in shares of Meta Platforms in the 2nd quarter valued at about $28,000. Strategic Wealth Advisors LLC acquired a new position in Meta Platforms in the 4th quarter worth about $29,000. Niles Investment Management LLC acquired a new position in Meta Platforms in the 4th quarter worth about $29,000. Finally, Axiom Investment Management LLC purchased a new position in Meta Platforms during the first quarter worth approximately $36,000. Institutional investors and hedge funds own 79.91% of the company’s stock.

Meta Platforms News Roundup Here are the key news stories impacting Meta Platforms this week:

Positive Sentiment: Meta launched Muse, a personal AI agent that can interact with Facebook, Instagram and third-party applications to perform tasks such as sending emails, booking travel, shopping and making payments. The product includes free and paid subscription tiers, offering a potential new revenue stream beyond digital advertising. Meta launches AI agent that can access other apps to send emails, make payments Positive Sentiment: The rollout follows the release of Muse Spark 1.3, a model aimed at coding and extended agentic tasks. Investors viewed the development as evidence that Meta’s substantial AI investment could eventually generate financial returns; Bank of America reportedly continues to see meaningful upside in the stock. Meta stock jumps 4% after Muse Spark 1.3: why BofA still sees 32% upside Positive Sentiment: Meta and Panmnesia proposed a data-center architecture designed to connect computing resources more tightly for extremely large AI models. The initiative supports Meta’s strategy of building extensive AI infrastructure and could improve long-term computing efficiency. One Chip, One Datacenter: Meta and Panmnesia Extend Tight Coupling Beyond the Rack with CXL Neutral Sentiment: Analysts and investors remain divided over Meta’s large AI infrastructure spending, reportedly including a potential $130 billion capital-expenditure commitment. Strong advertising growth and user monetization support the investment case, but the scale of spending raises execution and return-on-investment concerns. Wall Street Keeps Asking How Much Meta Will Spend Negative Sentiment: Muse increases Meta’s exposure to privacy, security and consumer-trust concerns because it can access sensitive information and act across other applications. Reports noted internal concerns about potential misuse or mishandling of personal data, which could increase regulatory and reputational risks. Meta pushes into personal AI agents as company faces public reckoning over privacy and safety Negative Sentiment: Meta faces continuing legal pressure, including a reported lawsuit alleging facial-recognition data was used to train smart-glasses systems. Separately, the company’s chief accounting officer sold 3,240 shares under a pre-arranged Rule 10b5-1 plan; the planned nature of the sale reduces its significance, but insider selling may weigh modestly on sentiment. Analyst Upgrades and Downgrades Several analysts have commented on the company. Robert W. Baird dropped their price objective on Meta Platforms from $830.00 to $750.00 and set an “outperform” rating on the stock in a report on Thursday, July 30th. Weiss Ratings lowered Meta Platforms from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday, June 26th. Cantor Fitzgerald dropped their price target on shares of Meta Platforms from $770.00 to $680.00 and set an “overweight” rating on the stock in a research note on Thursday, July 30th. Bank of America cut their price target on shares of Meta Platforms from $835.00 to $810.00 and set a “buy” rating for the company in a report on Thursday, July 30th. Finally, Phillip Securities upgraded shares of Meta Platforms to a “strong-buy” rating in a research report on Monday, August 3rd. Four analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating and nine have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, Meta Platforms presently has a consensus rating of “Moderate Buy” and a consensus price target of $785.22. Read Our Latest Stock Report on META

Meta Platforms Stock Performance Shares of NASDAQ:META opened at $613.48 on Wednesday. The company has a debt-to-equity ratio of 0.32, a current ratio of 2.23 and a quick ratio of 2.23. The business’s 50 day moving average price is $598.23 and its 200-day moving average price is $608.68. The firm has a market capitalization of $1.56 trillion, a PE ratio of 23.11, a P/E/G ratio of 1.07 and a beta of 1.25. Meta Platforms, Inc. has a 1 year low of $520.26 and a 1 year high of $790.80.

Meta Platforms (NASDAQ:META – Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The social networking company reported $6.18 earnings per share for the quarter, missing analysts’ consensus estimates of $7.19 by ($1.01). Meta Platforms had a net margin of 29.83% and a return on equity of 33.18%. The firm had revenue of $60.80 billion during the quarter, compared to analysts’ expectations of $60.22 billion. During the same quarter in the previous year, the business posted $7.14 EPS. The company’s revenue for the quarter was up 28.0% on a year-over-year basis. As a group, equities research analysts expect that Meta Platforms, Inc. will post 28.17 earnings per share for the current fiscal year.

Insider Transactions at Meta Platforms In other Meta Platforms news, CTO Andrew Bosworth sold 7,848 shares of the firm’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $558.00, for a total value of $4,379,184.00. Following the transaction, the chief technology officer directly owned 828 shares of the company’s stock, valued at $462,024. This trade represents a 90.46% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Javier Olivan sold 3,348 shares of the company’s stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $600.97, for a total value of $2,012,047.56. Following the completion of the sale, the chief operating officer owned 9,498 shares of the company’s stock, valued at $5,708,013.06. This trade represents a 26.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 36,227 shares of company stock valued at $21,205,509. Company insiders own 13.53% of the company’s stock.

Meta Platforms Profile (Free Report)

Meta Platforms, Inc develops technologies that help people connect, communicate and build communities online. The company’s principal products include Facebook, Instagram, Messenger, WhatsApp and Threads, which enable social networking, messaging, content sharing and digital communication.

Meta generates most of its business through advertising displayed across its family of apps. It also develops artificial intelligence technologies, business messaging tools and hardware and software through its Reality Labs division, including Quest virtual- and mixed-reality devices and related experiences.

The company was founded as Facebook in 2004 by Mark Zuckerberg and was renamed Meta Platforms in 2021 to reflect its broader focus on building the metaverse.

See Also Five stocks we like better than Meta Platforms Tesla’s Robotaxi Launch Wasn’t the Moment Investors Expected Despite Post-Earnings Drop, Wall Street Analysts Eye New Highs for Broadcom Stock Morgan Stanley Eyes Good Things Ahead for Meta After $18 Billion Legal Settlement Q3 Earnings Could Be the Catalyst the Market Has Been Waiting For Want to see what other hedge funds are holding META? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Meta Platforms, Inc. (NASDAQ:META – Free Report).

Receive News & Ratings for Meta Platforms Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Meta Platforms and related companies with MarketBeat.com's FREE daily email newsletter.

Meta Platforms Inc. (NASDAQ:META) is trending Wednesday after the company announced Muse, a personal AI agent designed to proactively help users manage tasks and achieve goals.

Muse: Meta’s AI Agent for Real-World TasksMuse is designed to do more than answer questions — it takes on tasks and projects directly, turning long-term goals into action plans and working on a person’s behalf across the apps they use daily. The agent runs on Muse Secure VM, a dedicated virtual machine that houses both the agent and a user’s data, and communicates through natural conversation, either in the standalone Muse app or directly within WhatsApp. Muse is powered by Muse Spark, Meta’s most capable model to date, built specifically for real-world agentic work.

Muse can handle tasks such as sending emails or booking travel and can also take on larger goals by developing personalized plans, coordinating time and resources, and advancing work independently — including opening a browser, filling out forms, and negotiating on a user’s behalf. For purchases, Muse checks out using Link, built by Stripe, becoming the first AI agent covered by Link’s purchase protections.

Muse’s Privacy and Security FeautersMeta built several safeguards into Muse’s architecture, including a separate Sentinel agent that monitors and must approve any action Muse takes involving the internet, and a design that keeps Muse from ever seeing a user’s passwords or payment credentials directly. Users control which apps Muse can access and how much authority it has, can revoke access at any time, and can opt out of having their interactions used to train Meta’s AI models. Later this year, Meta plans to introduce Muse Confidential VM, which will encrypt a user’s entire virtual machine, including conversations with Muse, with a key only the user holds.

Rollout of MuseMuse is rolling out in the U.S. on iOS, Android, and muse.ai, with availability on AI glasses coming soon. The agent is free for most use cases, with subscription plans available for expanded functionality.

Read Next

Meta Shares Trade HigherMETA Price Action: At the time of publication, Meta shares are trading 4.56% higher at $641.44, according to data from Benzinga Pro.

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Meta's ad engine is accelerating at a historic pace while the stock sits near a level that has historically signaled a cyclical floor, but the $130 billion capex bet hanging over the company changes every calculation an investor needs to…

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At $616.77, Meta Platforms (NASDAQ:META | META Price Prediction) is a Buy, and the reason has less to do with the size of the capex bill than with the price the market is charging to underwrite it. After a 17.35% one-year drawdown, investors are being handed the largest advertising franchise on the internet at a trailing multiple that historically marked a cyclical trough even though the company is in hyperscaler build mode.

Meta owns Facebook, Instagram, WhatsApp, Messenger, and Threads, plus the Reality Labs hardware unit that ships Meta Quest and Ray-Ban Meta glasses. The Family of Apps reached 3.60 billion daily active people in Q2 2026, and advertising still generated $59.36 billion of the quarter’s $60.80 billion in revenue.

What has brought the stock here is a straight collision between two facts. The ad engine is accelerating, with 28% revenue growth in Q2. At the same time, full-year 2026 capital expenditures have been guided to $130 billion to $145 billion, and free cash flow collapsed to $784 million in the quarter. The market has decided to price the spend before the returns.

Why the Ad Engine Alone Justifies the Multiple The bull case starts with a business that keeps accelerating. Ad impressions rose 14% in Q2 with price per ad up 12%, and Advantage Plus reached a $75 billion annual revenue run rate. AI-driven ranking changes drove an 8.3% increase in ad clicks on Facebook and a 15.7% uplift in conversions. The capex is already monetizing inside the core product.

Valuation is the second leg. Meta trades at a trailing P/E of 23 and a forward P/E of 18, with a PEG of 0.808. Gross margin sits at 82.0% and ROE at 30.24%. Analysts model 2027 revenue at roughly $305 billion.

Why the Capex Bill Could Break the Model The bear case is structural. Q2 operating margin compressed to 31% from 43% a year ago, total costs rose 55%, and long-term debt was raised to $83.66 billion to fund infrastructure. Annual capex has climbed from $37.256 billion in 2024 to $69.691 billion in 2025, and the 2026 range doubles that again (all of that spend has to be powered, cooled, and networked by somebody, which is the whole point of our free report on seven AI infrastructure suppliers that aren’t chipmakers: here).

ROI is the real question. Unlike Microsoft or Amazon, which monetize AI directly through enterprise cloud subscriptions (Azure and AWS), Meta is spending enterprise-cloud levels of capex on open-source Llama models and consumer features that produce no direct subscription revenue. Q2 EPS of $6.18 missed the $7.2214 estimate by 14.42%, ending a six-consecutive-quarter beat streak. Reality Labs added a $4.03 billion quarterly operating loss.

Why Patience Has a Real Case Too The hold argument is that the picture will not resolve for 12 to 24 months. Investors do not yet know whether the enterprise API, business agents, and compute-rental offerings Zuckerberg described will generate the returns needed to justify the depreciation stack now being built. Susan Li said Meta expects to remain “demand constrained” in the foreseeable future, which is bullish for utilization but silent on margin.

Two binary risks also argue for waiting. Q2 absorbed $2.4 billion in legal charges, and management flagged youth-related U.S. trials that may result in material losses. Q3 revenue guidance of $61 billion to $64 billion and the depreciation ramp into 2027 give an investor several clean check-in points before committing capital.

What the Numbers Actually Say About the Setup Meta trades at $616.77 against a consensus analyst target of $754.77, an implied upside of roughly 22%, though targets are one data point rather than a promise. The stock is down 6.4% year to date and 17.35% over one year, while the S&P 500 via SPDR S&P 500 ETF Trust (NYSEARCA:SPY) has returned 12.94% YTD and 18.65% over one year. That is roughly 35 percentage points of underperformance in a year.

Of the 62 analysts covering the stock, the breakdown is:

Strong Buy: 8 Buy: 47 Hold: 7 Sell: 0 Strong Sell: 0 No sell ratings against a stock trading below both its 50-day and 200-day moving averages is a specific signal.

Why $616 Is the Buy Print At $616.77, the setup favors accumulation.

The path to price appreciation runs through 2027 estimates. Consensus 2027 revenue of $305 billion and EPS of $33.95 imply that today’s price is roughly 18 times next-year earnings on a business still growing revenue in the high 20s. If capex plateaus while ad monetization keeps compounding at the pace shown by Generative Recommender and Advantage Plus, the operating margin snapback in 2027 does the work without needing a re-rating.

The catalysts that matter most are near. Q3 revenue of $61 billion to $64 billion, the Connect event on September 23, 2026, and the first quarter of clean commentary on Meta 1 subscription tiers and the business agent auction will all reprice the ROI question. Entry at $616 sits close to the 50-day moving average of $595.49 and well off the 52-week high of $788.22, which is where the risk/reward tightens.

The thesis is invalidated if 2027 capex guidance lands materially above 2026, if ad pricing decelerates below high single digits, or if a youth-litigation verdict lands in the billions. Watch quarterly free cash flow, price-per-ad growth, and any language around the 2027 depreciation curve. A stall in any of those flips the call.

The reason to own Meta at $616 is that the ad engine is already paying for the AI buildout while the stock is being priced as if it is not.

Contact [email protected] for any questions or corrections.

Meta is quietly assembling one of the largest AI compute empires on the planet, and the funding source hiding in plain sight changes everything about how you should value this stock.

I keep hitting the buy button on Meta, and I will say so plainly. The pitch, once you strip out the noise about Reels dances and glasses fashion shows, is straightforward: this company is quietly turning itself into one of the largest owners of AI compute on the planet, and it is paying for the buildout with cash thrown off by an ad machine that reaches 3.60 billion daily active people. A captive audience feeding a captive supercomputer is what keeps pulling me back.

Why the Ad Engine Is the Real Story Retirement money likes durability, and the core business earns it. In Q2 2026, Meta (NASDAQ:META | META Price Prediction) posted advertising revenue of $59.36 billion, up 27% year over year, with ad impressions up 14% and average price per ad up 12%. Volume and price both moved, which is the mark of a scarce advertising surface. Full-year 2025 operating cash flow reached $115.80 billion. That is the checkbook funding the AI plan.

Compute As a Second Product Line Meta’s 2026 capex guidance sits at $130 to $145 billion, up from $72.22 billion in 2025. Compute has become a second product line for the company. Mark Zuckerberg told analysts on the Q2 call that Meta is currently “demand constrained” and that industry capacity will stay tight “for the foreseeable future.” The company also announced a venture with BlackRock for a one-gigawatt data center in El Paso, Texas. Its business agents already reach more than 1 million businesses each week on WhatsApp and Messenger.

Balance Sheet That Can Actually Fund the Bet Meta ended Q2 with $90.3 billion in cash and marketable securities against $83.7 billion in debt. Return on equity runs at 30.2%, operating margin at 41.4%, and gross margin at 82.0%. Interest coverage sits at 71.5x. This is a balance sheet built to carry the buildout without shredding shareholders.

Why Not Alphabet or Amazon Instead The two names a long-term investor reaches for first are Alphabet (NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN). I own some of both. I still keep buying Meta. Amazon trades at a higher P/E multiple with a slimmer operating margin, so every dollar of capex travels through a much thinner profit funnel than Meta’s 41.4%. Alphabet is cheaper on a P/E basis, but its 2026 capex plan is aimed largely at defending Google Cloud, which chases the same enterprise dollars Meta’s business agents are now targeting. Meta is spending less absolute capital, at higher margins, into a captive user base neither peer can replicate.

Risk I Own Up To Q2 2026 free cash flow fell to $784 million from $8.55 billion a year earlier, EPS missed by 14.42%, and Meta absorbed $2.40 billion in legal charges tied to youth-related regulatory matters. More trials are scheduled. What keeps me steady is that operating cash flow still climbed 24.65% to $31.86 billion in the same quarter. Meta chose to redirect that cash into physical AI capacity rather than let it sit.

Why the Buy Button Stays Active Meta trades at a P/E of roughly 22 while building one of the most valuable physical asset bases of the next decade: gigawatts of AI compute funded by the largest ad audience on Earth. All of that buildout has to be powered, cooled, and networked by someone, and we pulled together seven suppliers doing exactly that in a free report here. The stock is down 17.35% over the past year and still up 379.54% over the past ten. I keep buying because every quarter this thesis gets more concrete and the market keeps handing me shares at a discount to what Meta is actually building.

Contact [email protected] for any questions or corrections.

Australia looks poised to claw social media back to an earlier era, if it can convince users to actually opt in. The government of Australian Prime Minister Anthony Albanese shared new legislation Tuesday that targets personalized feeds — the sticky and lucrative recommendation algorithms baked into Meta (META)'s Instagram, Alphabet (GOOGL)'s YouTube, and ByteDance's TikTok.

Australia already influences social media policy globally. In December, it pushed through a ban on social media use under age 16, inspiring legislation in California and Texas, across Europe, and in the U.K. But investors seem to neither buy (nor sell) Australia's proposed opt-out button for default algorithmic feeds.

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Why Big Tech's Business Model Is Under Threat

It’s been 30 years since the Telecommunications Act was signed into law under President Clinton. It laid the foundation for the internet to run as an information superhighway, free from government regulation. But recent court cases are chipping away at the protections of Section 230, which has shielded tech companies from liability issues for decades. Investor’s Business Daily technology reporter Ryan Deffenbaugh discusses the implications of these legal rulings on the internet landscape.

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Meta stock was mostly flat in afternoon trading Tuesday, along with Alphabet, while Snapchat parent Snap (SNAP) edged lower. One explanation: This sort of pressure isn't totally new.

Australian Push Meets Meta's $18 Billion Settlement
There's no question algorithmic feeds have upped app usage while boosting tech giants' ad revenues, but app makers such as Meta have already felt some heat to curtail personalized recommendations in the U.S.

With its $18 billion settlement in August, Meta agreed to offer under-18 users the option to opt out of algorithmic feeds. The settlement also includes setting two-hour daily usage limits for teens. However, the Aussie government's "My Feed, My Way" legislation would extend such an offer to adults as well as teens over the age of 16.

You Can Still 'Doom Scroll'
The upshot of Australia's initiative could be greater control for users over the stuff they see in Australia and beyond, while limiting the ability of app makers to serve up posts as they see fit.

"This is not about giving government control," Prime Minister Albanese said in a statement to press. "If people want to doom scroll, as you call it, that's fine, that's up to them," he said.

For such legislation to have noteworthy business impact, hordes of users would have to opt in. In Australia, at least, such a rule wouldn't fly under the radar. "Social media platforms will be required to send a notification to new and existing users offering them a choice over their default feed," the Albanese government said.

Age-Related Bans In Parallel
The simultaneous push to limit kids' social-media use faces pushback from researchers and privacy advocates.

There's mixed evidence that social media restrictions improve peoples' well-being unilaterally, even for kids, and Australia's age rules have proved relatively easy to get around. Age-related restrictions that require ID uploads also create new privacy risks, exposing sensitive information to hacking threats while making it easier for governments to surveil users across the Internet.

Follow Harriet Weber on LinkedIn and Bluesky. Find her on Signal: hew.04.

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The new tool, which can perform tasks such as shopping and sending email, is Meta's latest attempt to monetize its massive AI investments.

Meta on Tuesday rolled out Muse, an artificial intelligence agent that acts as a personal digital assistant by autonomously using software apps and websites on behalf of people.

It is one of the first times that a major tech company has introduced a mass market agent, which is a type of A.I. that researchers predict will become more sophisticated than simple chatbots. Many agents can already do the tasks of office workers, like filling out spreadsheets. But while A.I. agents like OpenClaw are a popular tool among developers and programmers, they have yet to catch on widely.

Muse can be spoken to as if it were a chatbot and instructed to send emails, book travel reservations, make online purchases and do more through an app or through WhatsApp, which Meta owns, the company said. Muse also connects to Meta’s other apps, like Instagram and Facebook, to learn more about its user. And it can be linked to third-party apps like Spotify, Ticketmaster, Shopify, Gmail and OpenTable.

Mark Zuckerberg, Meta’s chief executive, has described Muse as Meta’s next breakthrough, which works “24/7 on your behalf to help achieve your goals and improve your life, your health, your relationships, your finances.”

Muse is among the first significant consumer A.I. products created by Meta Superintelligence Labs, which Mr. Zuckerberg established last year to propel his company forward in the A.I. race. Meta has been spending billions of dollars to develop foundational A.I. models and to build data centers so that it can compete with Google, OpenAI, Anthropic and others on the cutting edge of the rapidly evolving technology.

So far, Meta has had hits and misses. Products like its A.I. smart glasses have sold millions of pairs while stoking privacy concerns. In July, the company temporarily took down its Instagram A.I. image generator after widespread criticism about copyright and privacy.

The Muse app is free but has limits on usage, which people pay $20 or $100 a month to increase. The agent is only for adults and can be given a custom name and avatar.

When people link their accounts from OpenTable or Ticketmaster to Muse, it can send messages about upcoming concert tickets or restaurant reservations if it thinks its user might be interested, and book them with one click. Muse also connects to Stripe and Shopify, allowing it to make purchases on someone’s behalf. Muse is the first A.I. agent to be covered by Stripe’s warranties and return policy, in case it makes a purchasing mistake, Meta said.

Since A.I. is not foolproof, Meta says that the agent “will sometimes make mistakes” but that it was designed to “help the user stay in control without being overwhelmed.” The Silicon Valley company has created a program so people can report bugs in Muse for a reward. Meta has also said personal data collected by Muse, as well as the agent itself, is securely stored on its cloud servers and hardware.

The agent is powered by Muse Spark, the A.I. model that Meta released in April. The model was Meta’s first developed under Alexandr Wang, the company’s 29-year-old chief A.I. officer, whom Mr. Zuckerberg hired to remake the division last summer.

Muse Spark trails leading models from Anthropic and OpenAI, but Meta plans to release a more powerful model, internally called Watermelon, as soon as next month.

Meta said it also planned to add more features to Muse in the coming months, including integrating it with its smart glasses that have a camera and a voice assistant.

Meta introduced its AI personal agent app on Tuesday and is asking a subset of users to pay at a time when the company and broader artificial intelligence industry face intensifying scrutiny and public skepticism.

The app, which was given the internal code name Hatch, is powered by the Muse Spark family of foundation models that Meta AI chief Alexandr Wang has been debuting at a breakneck pace since April.

Meta said the Muse app lets people offload digital tasks like booking appointments, filling out electronic forms and even monitoring home security camera feeds to AI-powered assistants. The company designed the app so "it feels very approachable and friendly and explainable, and it doesn't feel too complicated," Wang told CNBC in an interview.

"Behind the scenes, Muse might be doing very advanced coding workflows, or building sophisticated integrations, or doing quite a lot of heavy lifting while keeping that very sort of simple for the user," Wang said.

Wang said the Muse personal agent will be available in either a free tier or through monthly subscription plans of $20 or $100, depending on usage.

Meta CEO Mark Zuckerberg, who hired Wang last year as part of a $14 billion investment in his startup, Scale AI, has been dropping hints to investors that the company's next big AI bet involves supercharged digital assistants that sift through emails or look for deals on furniture.

Zuckerberg has said that supercharged digital assistants represent the next big leap for AI models, pitching them as one of the reasons that Meta is spending heavily on data centers and infrastructure. In the company's earnings call in July, Zuckerberg said "new personal agents that will be the foundation for our next wave of products and revenue lines in the months and years ahead."

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Meta's launch of its personal assistant comes amid a particularly fraught time for the company. Meta recently agreed to pay nearly $17 billion in a major settlement with a coalition of state attorneys general that had sued the company for misrepresenting the prevalence of harm on apps like Facebook and Instagram. Meta still faces a wave of personal injury and school district lawsuits involving similar allegations.

Meanwhile, there are rising concerns about the potential cybersecurity risks posed by AI agents and their underlying foundation models, and the country faces a growing backlash against AI data centers and the companies that are building them.

But Meta is also under pressure from Wall Street to show returns on its AI investments, as the company tries to diversify its business and reduce its reliance on digital ads. The personal agent follows other newer initiatives like the Muse Code AI agent for developers and various subscription plans that Meta has recently rolled out to generate new lines of business.

In addressing security concerns, Wang said the app runs within "its own isolated environment" inside Meta's computing infrastructure, and "never sees your actual passwords or payment details and asks before doing anything sensitive."

Read more CNBC tech news'Model fatigue' sets in as AI labs race to roll out new versions at frenetic paceMeet the CISO: A new front-line star in the AI cybersecurity warMistral bags $24 billion valuation as Samsung leads funding for Europe's AI championTSMC, Samsung commit to ASML's newest chipmaking tools as AI drives demandUsers must opt out of letting Meta use their interactions with the Muse personal agent to train the company's AI models. If they don't, the company will scrub "critical personally identifying information" before using the agent conversations and interactions to improve AI models, said David Singleton, Meta vice president of engineering.

The company is exploring potential monetary initiatives, such as taking a cut of AI agent-related shopping transactions, but hasn't settled on any concrete plan, Wang said.

"We think the commerce business model is potentially really interesting for this product because of how much it enables people to to actually find the things that they are excited about and ultimately fulfill a lot of those purchases," Wang said.

Users of the Muse personal agent app will be able to see a feed that shows them various updates from their connected Facebook and Instagram accounts, or certain articles or stories gleaned from the web, depending on what they want the feed to aggregate and summarize. The agent will also be available via WhatsApp, but that version won't contain the app features like the feed or an ideas tool that recommends AI agent trips and tricks, Wang said.

"The core functionality that you have in the main conversation with your agent is the same across those two services," Wang said.

Meta is playing into a major industry trend. Since the rapid rise of OpenClaw, used by coders to manage the AI models powering digital assistants, companies like OpenAI and Google have introduced similar agentic tools and features alongside startups like Town.

Wang said the Muse personal agent is intended to be "more accessible to the broader audience," compared to competing products, but conceded that it's still "pretty early in in this new era of personal agents."

Meta is asking third-party security researchers to find vulnerabilities within the Muse personal agent through a so-called bug-bounty program that includes financial rewards if they discover certain issues.

"We've hardened Muse based on extensive dogfooding, agentic red teaming, and against issues found in real adversarial scenarios by security researchers in our private bug bounty program," the company said in a technical blog post.

Meta said the personal agent will be available to U.S. consumers via iOS, Android or through a standalone website. It will eventually be accessible through the company's Ray-Ban Meta glasses.

WATCH: Colorado AG says Meta lawsuit's most important takeaway is the change in behavior, not money.

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Meta introduced a personal artificial intelligence agent called Muse that is “built for everyone,” the company said in a Tuesday (Sept. 8) blog post.

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META buy

Buy Meta (NASDAQ: META). Muse Spark 1.3 is concrete proof of faster, cheaper agentic coding (fewer tool calls/tokens) and better long-horizon performance—exactly what Meta needs to turn AI spend into ad targeting, recommendations, and developer tools. BofA’s 32% upside case is supported by the valuation still lagging the earnings power implied by improved ad efficiency and lower inference costs from MTIA chips.

Key Risk: Meta’s AI upgrades fail to show up in ad pricing/engagement and margins—AI costs keep rising faster than revenue, so the multiple compresses.

GOOG buy

Buy Alphabet (NASDAQ: GOOG). If Meta’s agentic models improve ad targeting and developer tooling, the competitive pressure shifts to search/ads efficiency. Alphabet’s stronger cash generation and diversified ad stack let it defend share while benefiting from the industry’s push toward better AI-driven ad relevance and automation.

Key Risk: Meta’s AI actually boosts ad performance enough to take meaningful share and force Alphabet to spend more to catch up, hurting margins.

Meta stock NASDAQ:META jumped sharply after the company released Muse Spark 1.3, giving investors evidence that its AI spending may eventually produce returns.

The model is designed for coding and longer-running agentic tasks. Meta says it uses roughly 20% fewer tool calls and 25% fewer tokens than Muse Spark 1.2 in comparable engineering work.

Bank of America analyst Justin Post remains bullish. He has a Buy rating and an $810 price target, implying about 32% upside from Meta’s September 3 close of $610.68.

The debate is whether those advances can justify the infrastructure bill behind them.

Meta has spent much of 2026 facing questions over whether AI investment is outrunning commercially useful progress.

Muse Spark 1.3 gives bulls something more concrete.

Meta says the model handles longer-horizon tasks better, manages multiple workflows in one thread and improves coding efficiency. It is available through Muse Code and the Meta Model API.

Bernstein reiterated an Outperform rating and an $800 target, arguing that Meta’s AI-enhanced advertising engine remains a major advantage. The firm believes Meta is on track to rival or surpass Google Search in advertising revenue.

Meta does not need Muse Spark to become a standalone business on OpenAI’s scale.

Better models can improve recommendations, ad targeting, engagement and developer tools across Meta’s apps. The payoff can appear inside its existing profit engine rather than only through model sales.

Bank of America’s case rests on the gap between Meta’s execution and valuation.

Post highlighted Meta’s rapid model-release cadence and said the agentic improvements matter as the company develops a consumer AI agent internally known as Hatch.

There is also a hardware angle.

BofA estimates Meta’s planned MTIA custom-chip deployments could eventually represent 15% to 20% of its total AI capacity. Greater reliance on in-house silicon could lower computing costs as workloads expand.

At around $617 when BofA made its case, Meta traded near 18 times projected 2027 GAAP earnings, below its historical multiple of roughly 21 times and the broader market.

BofA’s $810 target is based on 24 times projected 2027 earnings.

The risk is that Meta’s AI bill remains enormous.

Its infrastructure push is raising fixed costs and pressuring margins and free cash flow, meaning new model releases must eventually translate into measurable economic returns.

KeyBanc remains constructive but more conservative, as the firm cut its target to $760 from $855 while keeping an Overweight rating.

KeyBanc said Meta Superintelligence Labs had made “meaningful progress” with Muse Spark and argued investors were “under-appreciating platform stickiness” among consumers and advertisers.

But the burden of proof keeps rising.

Investors will want evidence that Muse Spark gains adoption, that agents such as Hatch become useful products, and that MTIA chips reduce computing costs.

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Bridgewater Advisors Inc. increased its position in shares of Meta Platforms, Inc. (NASDAQ:META – Free Report) by 4.7% during the second quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 26,083 shares of the social networking company’s stock after acquiring an additional 1,181 shares during the period. Meta Platforms comprises about 0.8% of Bridgewater Advisors Inc.’s portfolio, making the stock its 20th biggest position. Bridgewater Advisors Inc.’s holdings in Meta Platforms were worth $15,395,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also bought and sold shares of the company. First National Bank Sioux Falls increased its stake in shares of Meta Platforms by 0.7% in the fourth quarter. First National Bank Sioux Falls now owns 2,001 shares of the social networking company’s stock valued at $1,321,000 after buying an additional 14 shares during the period. Levin Capital Strategies L.P. grew its holdings in Meta Platforms by 1.4% during the 4th quarter. Levin Capital Strategies L.P. now owns 984 shares of the social networking company’s stock worth $649,000 after acquiring an additional 14 shares during the last quarter. Vista Capital Partners Inc. grew its holdings in Meta Platforms by 1.3% during the 2nd quarter. Vista Capital Partners Inc. now owns 1,075 shares of the social networking company’s stock worth $794,000 after acquiring an additional 14 shares during the last quarter. Acorn Creek Capital LLC increased its position in Meta Platforms by 0.7% in the 4th quarter. Acorn Creek Capital LLC now owns 2,118 shares of the social networking company’s stock valued at $1,398,000 after acquiring an additional 15 shares during the period. Finally, Objective Capital Management LLC increased its position in Meta Platforms by 2.8% in the 4th quarter. Objective Capital Management LLC now owns 553 shares of the social networking company’s stock valued at $365,000 after acquiring an additional 15 shares during the period. Institutional investors and hedge funds own 79.91% of the company’s stock.

Wall Street Analysts Forecast Growth A number of equities analysts have recently commented on the stock. Wedbush reiterated a “neutral” rating and set a $595.00 price target on shares of Meta Platforms in a report on Tuesday, September 1st. Barclays cut their target price on Meta Platforms from $830.00 to $780.00 and set an “overweight” rating on the stock in a report on Thursday, July 30th. Erste Group Bank upgraded Meta Platforms from a “hold” rating to a “buy” rating in a research report on Tuesday, July 7th. Wall Street Zen cut Meta Platforms from a “buy” rating to a “hold” rating in a research note on Saturday, May 16th. Finally, Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $810.00 price objective on shares of Meta Platforms in a research note on Monday, June 1st. Four research analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating and nine have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $785.22.

Read Our Latest Stock Report on Meta Platforms Key Meta Platforms News Here are the key news stories impacting Meta Platforms this week:

Positive Sentiment: Meta opened paid developer access to Muse Spark 1.3, with company executives and analysts claiming the model is approaching or matching offerings from Anthropic and OpenAI. Improved performance and token efficiency could support adoption in coding agents, model APIs, subscriptions and future generative-search advertising. Meta Platforms: Muse Spark 1.3 Was The Warning Shot Positive Sentiment: Recent coverage identifies Muse Spark 1.3 as a new catalyst that could improve confidence in Meta’s AI roadmap and help the company recover toward its prior highs, provided the technology translates into revenue and returns on investment. Meta Rises 4% as Muse Spark 1.3 Claims Parity with Anthropic and OpenAI Positive Sentiment: Some investment commentary views Meta as a major beneficiary of the ongoing AI infrastructure and computing cycle, alongside other hyperscalers, potentially creating a long-term growth opportunity. Hyperscalers Are the Backbone of AI Meta Platforms Stock Performance Shares of META opened at $616.77 on Monday. The company has a current ratio of 2.23, a quick ratio of 2.23 and a debt-to-equity ratio of 0.32. The firm’s fifty day simple moving average is $596.16 and its two-hundred day simple moving average is $609.05. Meta Platforms, Inc. has a 12 month low of $520.26 and a 12 month high of $790.80. The stock has a market capitalization of $1.57 trillion, a P/E ratio of 23.23, a price-to-earnings-growth ratio of 1.07 and a beta of 1.25.

Meta Platforms (NASDAQ:META – Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The social networking company reported $6.18 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $7.19 by ($1.01). Meta Platforms had a net margin of 29.83% and a return on equity of 33.18%. The business had revenue of $60.80 billion during the quarter, compared to analyst estimates of $60.22 billion. During the same period in the prior year, the firm earned $7.14 earnings per share. The firm’s revenue for the quarter was up 28.0% compared to the same quarter last year. As a group, analysts predict that Meta Platforms, Inc. will post 28.17 EPS for the current year.

Insiders Place Their Bets In other Meta Platforms news, COO Javier Olivan sold 434 shares of the stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $602.70, for a total transaction of $261,571.80. Following the transaction, the chief operating officer directly owned 5,856 shares in the company, valued at approximately $3,529,411.20. This represents a 6.90% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Curtis Mahoney sold 1,559 shares of the firm’s stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $558.00, for a total transaction of $869,922.00. Following the sale, the insider directly owned 1,957 shares of the company’s stock, valued at approximately $1,092,006. This trade represents a 44.34% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 32,987 shares of company stock valued at $19,202,995 in the last 90 days. Company insiders own 13.53% of the company’s stock.

About Meta Platforms (Free Report)

Meta Platforms, Inc (NASDAQ: META), formerly Facebook, Inc, is a global technology company best known for building social networking services and immersive computing platforms. Founded in 2004 and headquartered in Menlo Park, California, the company operates a family of consumer-facing products and services that connect users, creators and businesses. In October 2021 the company rebranded as Meta to reflect an expanded strategic focus on augmented and virtual reality technologies alongside its social media businesses.

Meta’s core consumer products include Facebook, Instagram, WhatsApp and Messenger, which enable social networking, messaging, content sharing and community building across mobile and desktop devices.

Read More Five stocks we like better than Meta Platforms AI Token Costs Are Changing the Hardware vs. Software Debate 3 ETFs That Could Move as Rate Expectations Shift 3 Stocks With September Catalysts Investors Shouldn’t Ignore Ollie’s Bargain Outlet Stock Falls on Weak Comps Despite Margin Gains Want to see what other hedge funds are holding META? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Meta Platforms, Inc. (NASDAQ:META – Free Report).

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BLB&B Advisors LLC cut its holdings in Meta Platforms, Inc. (NASDAQ:META – Free Report) by 6.9% in the second quarter, according to the company in its most recent disclosure with the SEC. The fund owned 22,817 shares of the social networking company’s stock after selling 1,691 shares during the quarter. BLB&B Advisors LLC’s holdings in Meta Platforms were worth $12,853,000 at the end of the most recent reporting period.

Other institutional investors have also added to or reduced their stakes in the company. Auto Owners Insurance Co boosted its stake in Meta Platforms by 76,587.7% in the 4th quarter. Auto Owners Insurance Co now owns 105,292,277 shares of the social networking company’s stock worth $69,502,379,000 after purchasing an additional 105,154,977 shares in the last quarter. State Street Corp raised its holdings in shares of Meta Platforms by 5.1% in the fourth quarter. State Street Corp now owns 90,841,345 shares of the social networking company’s stock worth $59,963,463,000 after buying an additional 4,395,763 shares during the last quarter. Geode Capital Management LLC raised its holdings in shares of Meta Platforms by 1.7% in the fourth quarter. Geode Capital Management LLC now owns 52,806,712 shares of the social networking company’s stock worth $34,734,628,000 after buying an additional 878,396 shares during the last quarter. Capital World Investors lifted its stake in shares of Meta Platforms by 0.8% during the fourth quarter. Capital World Investors now owns 39,558,637 shares of the social networking company’s stock worth $26,112,735,000 after buying an additional 310,947 shares during the period. Finally, Morgan Stanley lifted its stake in shares of Meta Platforms by 2.2% during the fourth quarter. Morgan Stanley now owns 37,553,102 shares of the social networking company’s stock worth $24,788,429,000 after buying an additional 823,883 shares during the period. Institutional investors and hedge funds own 79.91% of the company’s stock.

Meta Platforms News Summary Here are the key news stories impacting Meta Platforms this week:

Positive Sentiment: Meta opened paid developer access to Muse Spark 1.3, with company executives and analysts claiming the model is approaching or matching offerings from Anthropic and OpenAI. Improved performance and token efficiency could support adoption in coding agents, model APIs, subscriptions and future generative-search advertising. Meta Platforms: Muse Spark 1.3 Was The Warning Shot Positive Sentiment: Recent coverage identifies Muse Spark 1.3 as a new catalyst that could improve confidence in Meta’s AI roadmap and help the company recover toward its prior highs, provided the technology translates into revenue and returns on investment. Meta Rises 4% as Muse Spark 1.3 Claims Parity with Anthropic and OpenAI Positive Sentiment: Some investment commentary views Meta as a major beneficiary of the ongoing AI infrastructure and computing cycle, alongside other hyperscalers, potentially creating a long-term growth opportunity. Hyperscalers Are the Backbone of AI Wall Street Analyst Weigh In Several equities analysts recently issued reports on META shares. Needham & Company LLC reissued a “hold” rating on shares of Meta Platforms in a research report on Thursday, August 27th. Phillip Securities raised Meta Platforms to a “strong-buy” rating in a research report on Monday, August 3rd. Sanford C. Bernstein reiterated an “outperform” rating and set a $800.00 price target on shares of Meta Platforms in a research note on Thursday, July 30th. Wolfe Research reissued an “outperform” rating and issued a $700.00 price objective on shares of Meta Platforms in a report on Thursday, July 30th. Finally, Piper Sandler restated an “overweight” rating and issued a $785.00 price objective (down from $800.00) on shares of Meta Platforms in a research note on Thursday, July 30th. Four analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating and nine have given a Hold rating to the company’s stock. Based on data from MarketBeat, Meta Platforms currently has an average rating of “Moderate Buy” and an average price target of $785.22. Get Our Latest Report on Meta Platforms

Insider Transactions at Meta Platforms In other news, CFO Susan J. Li sold 9,196 shares of the firm’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $550.61, for a total transaction of $5,063,409.56. Following the sale, the chief financial officer owned 13,186 shares of the company’s stock, valued at $7,260,343.46. This trade represents a 41.09% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Andrew Bosworth sold 7,848 shares of Meta Platforms stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $558.00, for a total transaction of $4,379,184.00. Following the transaction, the chief technology officer directly owned 828 shares of the company’s stock, valued at approximately $462,024. This trade represents a 90.46% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 32,987 shares of company stock valued at $19,202,995. 13.53% of the stock is owned by insiders.

Meta Platforms Stock Performance NASDAQ META opened at $616.77 on Monday. Meta Platforms, Inc. has a 1 year low of $520.26 and a 1 year high of $790.80. The company has a debt-to-equity ratio of 0.32, a current ratio of 2.23 and a quick ratio of 2.23. The company has a market capitalization of $1.57 trillion, a PE ratio of 23.23, a P/E/G ratio of 1.07 and a beta of 1.25. The company has a fifty day moving average of $596.16 and a 200 day moving average of $609.05.

Meta Platforms (NASDAQ:META – Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The social networking company reported $6.18 earnings per share for the quarter, missing the consensus estimate of $7.19 by ($1.01). The company had revenue of $60.80 billion for the quarter, compared to analyst estimates of $60.22 billion. Meta Platforms had a return on equity of 33.18% and a net margin of 29.83%.Meta Platforms’s revenue for the quarter was up 28.0% on a year-over-year basis. During the same period in the prior year, the business posted $7.14 earnings per share. Research analysts forecast that Meta Platforms, Inc. will post 28.17 earnings per share for the current year.

Meta Platforms Profile (Free Report)

Meta Platforms, Inc (NASDAQ: META), formerly Facebook, Inc, is a global technology company best known for building social networking services and immersive computing platforms. Founded in 2004 and headquartered in Menlo Park, California, the company operates a family of consumer-facing products and services that connect users, creators and businesses. In October 2021 the company rebranded as Meta to reflect an expanded strategic focus on augmented and virtual reality technologies alongside its social media businesses.

Meta’s core consumer products include Facebook, Instagram, WhatsApp and Messenger, which enable social networking, messaging, content sharing and community building across mobile and desktop devices.

Read More Five stocks we like better than Meta Platforms AI Token Costs Are Changing the Hardware vs. Software Debate 3 ETFs That Could Move as Rate Expectations Shift 3 Stocks With September Catalysts Investors Shouldn’t Ignore Ollie’s Bargain Outlet Stock Falls on Weak Comps Despite Margin Gains

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Meta Platforms (META - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Over the past month, shares of this social media company have returned +4.2%, compared to the Zacks S&P 500 composite's -0.1% change. During this period, the Zacks Internet - Software industry, which Meta Platforms falls in, has gained 4.2%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Meta Platforms is expected to post earnings of $6.33 per share, indicating a change of -12.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -4.3% over the last 30 days.

The consensus earnings estimate of $31.52 for the current fiscal year indicates a year-over-year change of +34.2%. This estimate has changed -1.2% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $34.19 indicates a change of +8.5% from what Meta Platforms is expected to report a year ago. Over the past month, the estimate has changed -0.8%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Meta Platforms is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For Meta Platforms, the consensus sales estimate for the current quarter of $63.17 billion indicates a year-over-year change of +23.3%. For the current and next fiscal years, $253.93 billion and $306.26 billion estimates indicate +26.4% and +20.6% changes, respectively.

Last Reported Results and Surprise HistoryMeta Platforms reported revenues of $60.8 billion in the last reported quarter, representing a year-over-year change of +28%. EPS of $6.18 for the same period compares with $7.14 a year ago.

Compared to the Zacks Consensus Estimate of $60.21 billion, the reported revenues represent a surprise of +0.98%. The EPS surprise was -12.96%.

Over the last four quarters, Meta Platforms surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Meta Platforms is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Meta Platforms. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.