SummaryMeta Platforms is rated a Strong Buy due to accelerating revenue growth, driven by AI-enhanced advertising and expanding monetization avenues.META's AI-powered Advantage+ campaigns deliver 17% higher ROAS and 32% lower CPA, fueling advertiser spend and supporting sustained revenue growth.Subscriptions and wearables offer incremental upside, while Reality Labs' AI glasses show rapid adoption, though profitability remains a wildcard.Custom ASIC investments are expected to mitigate long-term CapEx pressures, potentially boosting free cash flow margins and supporting high-teens CAGR returns. Kira-Yan/iStock Editorial via Getty Images
Investment Thesis Meta Platforms (META) has been investing heavily in AI infrastructure, which has investors concerned as to whether or not they will see a return on these massive investments. Despite these doubts, Meta is experiencing revenue growth acceleration, which is being driven
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Mark Zuckerberg řekl, že vývoj AI agentů v Meta za poslední čtyři měsíce nepostupoval tak rychle, jak čekal. Firma podle něj začne z investic do AI těžit výrazněji během tří až šesti měsíců.
Meta CEO Mark Zuckerberg wears the Meta Ray-Ban Display glasses, as he delivers a speech presenting the new line of smart glasses, during the Meta Connect event at the company's headquarters... Purchase Licensing Rights, opens new tab Read more
NEW YORK, July 2 (Reuters) - Meta (META.O), opens new tab Chief Executive Mark Zuckerberg told an internal town hall on Thursday that AI agent development over the last four months had not "accelerated in the way we expected," according to a recording heard by Reuters.
Zuckerberg added that a company reorganization that included major job cuts was not as "clean" as it could have been and that the company's bets on the new structure "haven't come to fruition yet."
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Meta is projected to spend as much as $145 billion on AI infrastructure this year, a significant portion of Big Tech's more than $700 billion outlay on the technology.
Zuckerberg said he expects that the social media giant will begin to experience more significant benefits from its AI investments within the next three to six months.
A Meta spokesperson declined to comment on Thursday.
In the same town hall, Meta's chief technology officer, Andrew Bosworth, said a review of a recent data security incident with the company's controversial mouse-tracking software indicated that no employee data was included in AI training.
Last month, Meta paused the program, which tracks employee mouse movements and digital activity for AI training, while investigating the exposure of sensitive data.
If the company turns the program back on once the review is completed, it will be on an "opt-in" basis, he said.
When Meta first installed the program on U.S. employees' computers in April, Bosworth told them there was no way to opt out.
Reporting by Katie Paul in New York and Courtney Rozen in Washington; Additional reporting by Jaspreet Singh in Bengaluru; Editing by Peter Henderson and Matthew Lewis
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Courtney Rozen reports on the world's largest technology companies from Washington, D.C., focusing on the relationship between the tech industry and the U.S. government. She reported on DOGE and the federal workforce during the first year of U.S. President Donald Trump’s second term. Prior to joining Reuters, she was a White House correspondent at Bloomberg Government. She graduated from American University with a master's degree in journalism.
Meta ustoupila od akvizice Kalshi, protože kolem platformy panovaly „příliš zamotané“ regulační a etické otázky. Firma mezitím oznámila, že si chce vyvíjet vlastní play-money prediction market aplikaci.
Mark Zuckerberg just dodged a bullet. Zuckerberg, whom speculators give 32% odds of becoming the next trillionaire, came eerily close to steering Meta Platforms (NASDAQ:META | META Price Prediction) into one of the most legally and ethically fraught corners of consumer tech. According to NPR reporting from June 30, Zuckerberg personally floated an acquisition of prediction market platform Kalshi. Fortunately for him, the talks never advanced. The reason Meta walked away is the same reason investors should be relieved: the company judged the outstanding questions around Kalshi to be “too messy.”
Context matters. Meta just posted Q1 2026 revenue of $56.31 billion, up 33.1% year over year, with EPS of $10.44 versus a $6.66 estimate and Family of Apps daily active people reaching 3.56 billion, up 4% year-over-year. This is a $1.28 trillion company trading at roughly 20x trailing earnings. Bolting a regulated gambling venue onto that engine offered limited financial upside and enormous risk potential.
Why Kalshi Would Have Been a Disaster Prediction markets are riding a gambling wave. Amounts wagered on sports in the U.S. hit $165 billion in 2025, up from $6.6 billion in 2018. Kalshi’s platform spans 13 categories including elections, economics, sports, crypto, tech, and entertainment, a footprint that would thrust Meta squarely in front of the CFTC, state gaming regulators, and Congress.
Meta already faces EU and U.S. regulatory headwinds and youth-related litigation trials in 2026. The EU is escalating its probe into alleged addictive design elements impacting children, and Meta is negotiating with U.S. regulators for a voluntary review of its AI models. Bolting on a real-money betting venue to that pile would have placed another bullseye on Meta’s back.
Meta Pipeline While Kalshi was a distraction Meta avoided, the company’s actual pipeline is moving on several fronts.
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Mini-games social feed. Meta is rolling out a new app featuring a social feed of vibe-coded mini-games in select regions, per Insider, an early signal of where the company sees lightweight interactive content heading. Meta Compute. Bloomberg reports Meta is developing a cloud infrastructure business to monetize excess AI compute capacity, internally dubbed Meta Compute. The initiative encompasses three layers: AI model access hosted on Meta’s own infrastructure comparable to AWS Bedrock, raw compute capacity available to third parties, closer to CoreWeave’s model, and direct developer access to Meta’s data centers, chips, and models. Meta shares surged more than 7% on the news. AI spending per employee. Meta spent nearly $50,000 per employee annually on AI tokens, per the New York Times, a figure that highlights how deeply the company has embedded AI tooling into its workforce before selling any of that capacity externally. Wolfe Research estimates Meta’s potential AI cloud business could lift EPS by roughly 20% for every 1 gigawatt of compute monetized at a $25 billion revenue run rate. The firm projects Meta’s 2027 capital expenditures at $200 billion, well above the Street’s $160 billion estimate, while maintaining an Outperform rating and an $800 price target. A Kalshi acquisition could have dropped a regulatory grenade into the middle of all of it.
The Market Verdict Reddit reacted quickly. A thread titled “Suckerberg panic bought the entire AI chip supply and now he has no idea what to do with it” hit 11,356 upvotes on r/wallstreetbets. Meanwhile, a companion “$META accepted defeat” post on r/stocks drew 1,184 upvotes and 448 comments. Ironically, prediction markets themselves priced the news as a modest negative: Polymarket assigned a 0.99 probability that META closes down on July 2.
Zuckerberg’s stated priority is “personal superintelligence,” backed by capex guidance of $125 to $145 billion in 2026. Reports suggest Meta is now building a play-money prediction market app in-house, carrying a far lighter regulatory footprint. Analysts still carry a consensus target of $827.32, with 57 buy ratings and zero sells. Passing on Kalshi kept that thesis intact.
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It's rare for a stock the size of Meta Platforms (META +8.88%) to jump 9% on non-earnings news, but that's exactly what happened on Wednesday, and for good reason.
Bloomberg reported that the social media giant is launching its own cloud computing business. Though Meta hasn't made its own announcement about a new cloud infrastructure service, the news comes weeks after CEO Mark Zuckerberg said that a cloud business was "definitely on the table."
The move added about $150 billion to Meta's market cap as investors are hopeful it could unlock a second profitable revenue stream for the company, complementing its advertising juggernaut, and leverage infrastructure it already owns. Cloud computing has become a huge cash cow for Meta's big tech peers like Amazon, Microsoft, and Alphabet, and all three are reporting accelerating growth in the cloud, showing demand for compute infrastructure skyrocketing in the AI era. Meta is also considered the fourth hyperscaler, though it's the only one without a cloud business. Zuckerberg has said that his company receives interest in cloud services every week, and that companies are willing to pay a premium, suggesting it should be able to hit the ground running when it launches.
The shockwaves from the news were felt throughout the tech sector as neocloud companies like CoreWeave and Nebius fell by double digits as Meta represents a huge new competitor, and chip stocks like Micron were down sharply as well, as investors interpreted the news as an increase in chip supply, which would hurt "bottleneck" plays like Micron, which have soared in recent months on the memory shortage. Additionally, it could signal a peak in the AI capex investment cycle.
Image source: The Motley Fool.
What's in Meta's new cloud service The service is still in development, but according to the report, Meta is planning on offering two primary services. The first is access to bare-metal computing capacity, essentially renting out its AI chips to companies willing to pay for them. This is CoreWeave's business model, and it's driven several quarters of triple-digit revenue growth, though CoreWeave has had to take on billions in debt to build out its data centers to meet demand, leading to losses.
Like Amazon's Bedrock, Meta is also expected to host AI models, including those from its new Muse Spark LLM, and charge developers to access them.
Meta's cash cow advertising business and the money it's already invested in AI infrastructure give it a competitive advantage against companies like CoreWeave, which don't have the cash cushion that Meta has, nor do they have another way to monetize cloud demand as Meta is doing with its AI models.
Getting into the cloud business looks like a smart business move. If Meta can turn an asset it owns from a high-risk investment to a profit center, why wouldn't it do so? It also shows Zuckerberg may be starting to act more rationally and follow the market, rather than his own product vision and desires, which have mostly led to flops.
Finally, there's a bonanza going on in AI cloud computing, which has driven bumper profits for the three leading hyperscalers. Google Cloud, the smallest of the three leaders, was losing money as recently as 2022, with a loss of $1.9 billion that year, but its profits have soared in the AI era as both demand and prices for cloud computing have gone up. By 2025, its operating income had jumped to $13.9 billion, more than doubling from the year before.
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Prior to the cloud computing report, Meta stock had slumped on worries that its AI investments weren't paying off, on reports of low morale following several rounds of layoffs, and concerns that it was overspending after lifting its capex forecast to $125 billion-$145 billion this year.
As a result, the stock now trades at a very attractive price-to-earnings ratio of 22, and that's after it reported 33% revenue growth in the first quarter, showing the core business is strong.
While the details on the cloud business aren't fully clear, if it executes effectively, a Meta Cloud could be where Google Cloud is today in five or ten years, as there's plenty of demand for it.
Trading at a discount to the S&P 500, the stock looks like a no-brainer buy on plans to launch a cloud business.
WhatsApp zavádí uživatelská jména a chce omezit přivlastňování si známých jmen jen skutečným majitelům, aby zabránil vydávání se za jiné účty. Meta zároveň přidává více vrstev ochrany proti podvodům.
WhatsApp recently began offering usernames, designed to help people connect while keeping their phone numbers private.
Now, the Meta-owned company said it will allow high-profile names to be claimed only by legitimate owners as it tries to prevent impersonation on the messaging platform, Bloomberg News reported Wednesday (July 1).
The username feature was introduced Monday (June 29), when Meta began letting customers reserve a unique handle for launch later in the year.
“Usernames are our latest step to make WhatsApp even more private. There’s no directory to browse and no suggestions—people will need to know your exact username to contact you for the first time,” the company wrote in its announcement.
According to the Bloomberg report, the move is facing scrutiny from India’s government, which is expected to call on WhatApp to explain the implications of the feature. Meta told Bloomberg it has built several layers of protection against scams into WhatsApp’s usernames offering.
“Other users need to know the exact username to message you, we will limit how many new people an account can contact, block repeated attempts to guess someone’s username key, and have systems to detect and remove activity showing common impersonation and abuse patterns,” the company said.
Bloomberg noted that India represents the largest market for WhatsApp with upwards of 600 million users, meaning any serious government pushback can hinder the global rollout of the username feature.
This is happening at a time when scammers are increasingly using social media channels to target their victims. Findings by the Federal Trade Commission (FTC) released in April showed that nearly 30% of people who reported losing money in a scam last year say that the scam began on social media.
“Scammers may hack a user’s account, exploit what a user posts to figure out how to target them, or buy ads and use the same tools used by real businesses to target people by age, interests or shopping habits,” the commission said.
The FTC’s data are in line with PYMNTS Intelligence research which showed that digital communication channels are among the most common ways cybercriminals make their first contact with financial scams victims.
Meta introduced a series of artificial intelligence-powered anti-scam tools for WhatsApp, Facebook and Messenger earlier this year.
In the case of WhatApp, that meant a warning system that alerts users of potentially suspicious device-linking requests, aimed at preventing scams where fraudsters try to dupe WhatsApp users into connecting their account to another device.
Akcie Nebius a CoreWeave byly v ranním obchodování asi o 15 % níže a IREN klesla asi o 6,5 % po zprávě, že Meta zvažuje vlastní cloud a prodej přebytečné kapacity pro AI. Trh to čte jako rostoucí konkurenci pro neocloudy.
The artificial intelligence buildout has created one of the largest infrastructure races in technology history. Companies across the industry are spending hundreds of billions of dollars on data centers, GPUs, networking equipment, and energy capacity to support AI models. Annual AI infrastructure spending by the major hyperscalers is approaching $750 billion, as they, startups, and governments compete for compute power.
That spending wave created a new class of AI infrastructure companies known as “neoclouds.” These specialized providers built businesses around supplying GPU clusters and high-performance computing capacity faster than traditional cloud providers could deliver. But a report from Bloomberg this morning that Meta Platforms (NASDAQ:META | META Price Prediction) is exploring its own cloud business under its Meta Compute initiative sent shares of several AI infrastructure companies lower — raising a bigger question for investors: Is the neocloud opportunity shrinking just as quickly as it emerged?
Shares of Nebius Group (NASDAQ:NBIS), CoreWeave (NASDAQ:CRWV), and IREN (NASDAQ:IREN) are all declining following the news. Nebius and CoreWeave were down about 15% in morning trading, while IREN declined about 6.5%. Meta Platforms is up over 10%.
The market reaction reflects a simple concern: Meta is not just a customer anymore — it could become a competitor.
Neoclouds Built a Business Around AI’s Compute Shortage Neocloud companies exist because AI demand moved faster than traditional cloud capacity.
The biggest cloud providers — Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), and Alphabet (NASDAQ:GOOG) — remain dominant, but AI companies need GPU capacity immediately. That opened the door for companies focused almost entirely on AI workloads.
Here is how the major players compare:
Company Focus Key Customers/Partners Nebius Full-stack AI cloud, GPU clusters, AI infrastructure Meta, Microsoft CoreWeave Nvidia GPU-focused AI cloud Meta, OpenAI, Anthropic IREN Renewable-powered AI/HPC data centers Microsoft, AI customers Nebius gained attention after securing a deal with Meta worth up to about $27 billion over five years. Nvidia (NASDAQ:NVDA) has invested billions in the company. Nebius is building an AI-focused cloud platform designed around GPU infrastructure.
CoreWeave has followed a similar path. The company’s business model centers on Nvidia GPU availability and optimized AI computing environments. Its agreement with Meta reportedly totals about $21 billion, alongside partnerships involving OpenAI and Anthropic.
IREN took a different route. Originally focused on Bitcoin (CRYPTO:BTC) mining, the company has shifted toward AI and high-performance computing data centers, using renewable energy as part of its infrastructure strategy.
Meta’s Move Is a Risk — But Also a Validation Bloomberg reported that Meta is considering selling excess AI compute capacity through Meta Compute. The company could eventually offer raw GPU capacity or AI-related services. The plans remain early and could change.
The concern, though, is obvious. If Meta spends billions building AI infrastructure and then sells unused capacity, it could pressure pricing for companies whose business depends on renting GPUs.
But there is another side, too. Meta’s own AI ambitions are enormous. CEO Mark Zuckerberg has discussed building massive AI infrastructure to support Llama models and future “superintelligence” efforts. Meta has indicated it expects to build tens of gigawatts of AI capacity over time. Selling excess capacity would be a way to improve returns on those investments.
That strategy is not unusual. Companies with expensive infrastructure often monetize unused capacity. SpaceX (NASDAQ:SPCX), for example, uses its technology platform to serve outside customers through its Starlink business.
Surprisingly, Meta becoming a potential competitor also confirms the scale of the opportunity. Companies do not spend hundreds of billions of dollars building AI infrastructure because demand is disappearing.
The Bigger Risk Is Not Meta — It Is Supply and Execution Granted, neocloud investors need to understand the risks. These companies have attractive growth opportunities, but they also carry heavy capital requirements. Building AI data centers requires billions of dollars in GPUs, power infrastructure, and financing.
The risks include:
AI demand slowing before capacity investments generate returns Hyperscalers flooding the market with cheaper compute Higher interest rates increasing financing costs Customer concentration creating bargaining pressure Customer concentration is especially important. Meta and Microsoft are valuable partners, but they also have the resources to build internally.
That said, neocloud companies still offer advantages. They can deploy specialized AI infrastructure faster, provide flexible capacity, and serve customers that need immediate access to GPUs.
In short, the market reaction looks more like a reset of expectations than the end of the neocloud story.
Key Takeaway Meta’s cloud ambitions are a reminder that the AI infrastructure race will become more competitive. Neocloud companies cannot assume today’s demand environment will continue forever. But investors should not confuse competition with collapse.
Meta’s willingness to spend billions on AI infrastructure supports the core investment thesis: compute demand remains massive. The companies best positioned for the next phase will likely be those with strong contracts, diversified customers, efficient data center operations, and specialized offerings.
For investors, the question is not whether AI compute demand exists. The question is which companies can turn that demand into durable profits as the industry matures.
Meta jmenovala Alexe Schultze prvním chief data officerem, aby lépe řídil globální AI analytiku. Denise Morenoová se zároveň stává marketingovou šéfkou.
A woman walks by the Meta Lab in Los Angeles, California, U.S., May 20, 2026. REUTERS/Daniel Cole/File Photo Purchase Licensing Rights, opens new tab
July 1 (Reuters) - Meta said on Wednesday its chief marketing officer Alex Schultz will become the company's first chief data officer, to better manage AI analytics globally.
The Facebook-parent also promoted its vice president of consumer marketing and growth, Denise Moreno, to marketing chief.
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"My focus in this new role will be helping transform how Meta learns and makes decisions in the AI era," Schultz said in a LinkedIn post, opens new tab.
The leadership changes signal at Meta's move to deepen its focus on data-driven decision-making and AI integration across its operations.
Schultz joined the company in 2007 and held responsibilities across various domains like developing Meta's brand strategy and WhatsApp privacy campaigns, according to his LinkedIn page.
Shares of Meta were up 10% after Bloomberg News reported earlier on Wednesday that the company is building a cloud business to sell excess AI computing capacity.
A 17-year veteran at Meta, Moreno began her career managing email marketing and growth experiments, she said, opens new tab in a separate post.
Axios first reported about Meta naming Schultz as its chief data officer and elevating Moreno as CMO.
Meta is projected to spend as much as $145 billion on AI infrastructure this year, a significant portion of Big Tech's more than $700 billion outlay on the technology.
Reporting by Jaspreet Singh in Bengaluru; Editing by Joyjeet Das
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Meta Platforms chce prodávat přebytečný výpočetní výkon ze své AI infrastruktury, kterou sama vybudovala. Tím by se z nevyužité kapacity stal nový zdroj tržeb.
Meta Platforms Inc's (NASDAQ:META, XETRA:FB2A, SIX:FB) plan to sell spare computing power is less a bold expansion than an admission, that the company has built so much AI capacity it now needs somewhere to put the surplus.
The Facebook and Instagram owner has spent heavily on data centres and chips to chase its artificial intelligence ambitions, a spree that has repeatedly unsettled investors worried about where the returns will come from.
Selling access to that infrastructure reframes the question.
Excess compute that would otherwise sit idle becomes a revenue line, and the capital budget that spooked the market starts to look less like a bet and more like a hedge.
It also drops Meta into direct competition with Amazon Web Services, Microsoft Azure and Google Cloud, the three companies that dominate cloud infrastructure and treat it as a core profit engine rather than an afterthought.
That is the awkward part of the strategy.
Meta would be entering a mature, margin-sensitive market as the newest and least proven vendor, pitching capacity to customers who may also be rivals or wary of feeding a social media giant their AI workloads.
The move borrows directly from Amazon's origin story, where internal infrastructure built for the retail business was rented out and became the industry's most profitable cloud operation.
Whether Meta can repeat that trick is unproven because renting compute is a service business with support, reliability and enterprise sales demands that differ sharply from running social networks.
Still, the logic is hard to fault.
If the AI arms race forces hyperscalers to over-build to avoid being caught short, monetising the overhang is the rational response, and it gives Meta a partial answer to the capex critics.
The signal to watch is pricing, because a company sitting on surplus capacity has every incentive to undercut, and that could squeeze the incumbents' fattest margins.
Soud zamítl snahu Meta zrušit žalobu 29 generálních prokurátorů států, kteří ji viní z navrhování Facebooku a Instagramu tak, aby děti na platformách „závisely“. Soud zároveň uvedl, že Meta neplnila pravidla zákona o ochraně soukromí dětí.
A federal judge rejected Meta Platforms’ bid to dismiss a lawsuit by 29 state attorneys general accusing it of designing Facebook and Instagram to addict children and knowingly concealing the harm from the public.
In a decision late on Monday night, US District Judge Yvonne Gonzalez Rogers in Oakland, Calif., denied Meta’s motion to dismiss claims based on deception, unfair practices and violations of the federal Children’s Online Privacy Protection Act.
The judge also said Meta did not comply with that law’s notice and parental consent requirements, and granted summary judgment to the states on that issue.
Meta’s bid to dismiss a lawsuit by 29 state attorneys general accusing it of designing Facebook and Instagram to addict children and knowingly concealing the harm from the public was rejected. Bloomberg via Getty Images Meta and its lawyers did not immediately respond to requests for comment on Tuesday.
Gonzalez Rogers also oversees related multidistrict litigation by more than 2,600 individuals, school districts and local governments over whether social media platforms such as Facebook, Instagram, Google and YouTube, Snapchat and TikTok addict children.
Meta downplays harms The states said research has shown that children’s use of Facebook and Instagram could lead to depression, anxiety, insomnia, interference with education and daily life, and self-harm including suicide.
Meta countered that the attorneys general had no evidence it misled consumers about its platforms’ alleged addictiveness, including in congressional testimony by Chief Executive Mark Zuckerberg.
The Menlo Park, Calif.-based company said this was because “social media addiction” is not an established psychiatric condition, and therefore statements that its platforms are not addictive could not be false.
The states said research has shown that children’s use of Facebook and Instagram could lead to depression, anxiety, insomnia, interference with education and daily life, and self-harm including suicide. Above, victims’ families after a trial in Los Angeles earlier this year. Andy Johnstone for CA Post
The judge also said Meta did not comply with that law’s notice and parental consent requirements. Getty Images Meta also said it didn’t violate the children’s online privacy law because it directed Facebook and Instagram to a general audience, not just children under age 13.
Judge finds factual disputes about addictiveness In a 38-page decision, Gonzalez Rogers found material factual disputes over whether Meta’s social media platforms are addictive, whether Meta falsely denied it designed them that way, and whether it “partially” directed the platforms at children.
“The AGs present a reasonable interpretation of [Meta’s] statements that Facebook and Instagram are not designed in ways that cause teens to compulsively use the platforms to their detriment,” she wrote. “To the extent plaintiffs’ evidence shows that the platforms are in fact designed to do just that, a jury could reasonably find the statements were untrue to a reasonable person.”
A trial is scheduled for Aug. 18, court records show.
Despite reporting its fastest quarterly growth since the pandemic in the first quarter, Meta Platforms (META +1.50%) has struggled this year.
The stock is down 17% year-to-date due to concerns about rising capital expenditures, layoffs, and artificial intelligence strategy that increasingly seems undisciplined.
As a result, Meta stock is looking unusually cheap, trading at a forward P/E of just 17, which is dirt cheap for a company that just grew its revenue by 33%.
At this point, the company needs a catalyst to change its narrative, and it's hopeful that its latest iteration of smart glasses can help do that.
Image source: The Motley Fool.
Meta has been building out its smart glasses business for years now, partnering with brands like Ray-Ban and Oakley.
At $299, the new Meta are $80 less than its previous entry-level glasses, and it's partnering with Ray-Ban parent EssilorLuxottica to make them, though they won't carry the Ray-Ban brand.
The glasses come in 26 styles and include Meta AI, powered by Muse Spark, its new and improved large language model that replaced LLaMa.
Meta sees glasses as the ideal device for the AI era, as users can easily communicate with them, and they provide an AI assistant that can see what you're seeing.
EssilorLuxottica said it sold more than 7 million of the AI glasses in 2025, up from just 2 million combined in 2023 and 2024, a sign that smart glasses are making progress in going mainstream.
However, Meta will have to ramp up glasses considerably to move the needle on the top line. Assuming an average price of $400 for those glasses, they would generate $2.8 billion in revenue, though that would be split between the two companies.
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Meta's AI strategy In 2025, Reality Labs, Meta's division that contains its smart devices, including glasses and VR headsets, AI labs, and metaverse projects, reported just $2.2 billion in revenue, essentially flat from the year before. Reality Labs lost $19.2 billion due to its spending on AI infrastructure. In 2026, the company expects 70% of its Reality Labs, or roughly $15 billion in expenses, to go to wearables like glasses and VR headsets.
Given the ongoing losses at Reality Labs and the company's plan to spend $125 billion-$145 billion in capital expenditures this year, it's understandable that investors want to see a return on that investment. Some of its AI spending is going to support the core family of apps business, and its advertising engine, which brought in more than $80 billion in operating income last year.
Meta is also the only one of the four major hyperscalers, which includes Amazon, Alphabet, and Microsoft, that doesn't have a cloud computing business. CEO Mark Zuckerberg has said that starting one is "definitely on the table," and doing so seems like a smart move for the company, as it's already receiving interest from prospective customers.
In the AI era, demand for cloud infrastructure has skyrocketed, and Amazon, Alphabet, and Microsoft are all seeing accelerating growth in their cloud businesses, a sign that there would be sufficient demand for a Meta Cloud.
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What it means for investors At this point, Meta seems oversold. Like Microsoft, the stock has tumbled on concerns that it's overspending on capex, but there's no structural risk to the advertising business, and a forward P/E of 17 is a great price to pay for a company that dominates social media and has an operating margin of 41%, even with the losses in Reality Labs.
For the glasses business to make up 10% of its current revenue, Meta would need to grow that business to $20 billion, which could mean selling around 40 million of them. That won't be easy, but its recent progress shouldn't be overlooked, and a price point as low as $299 is likely to pull in some buyers.
At the current stock price, Meta's risks seem more than priced in. The company doesn't need glasses to be successful for the stock to work, but investors seem to be overlooking the possibility that the business does continue to scale and establish a viable second revenue stream for Meta.
Mark Zuckerberg chce, aby Meta prozkoumala spolupráci s Polymarket a Kalshi, zatímco vyvíjí vlastní predikční aplikaci Arena. Ta má používat body místo reálných sázek.
People walk behind a logo of Meta Platforms company, during a conference in Mumbai, India, September 20, 2023. REUTERS/Francis Mascarenhas Purchase Licensing Rights, opens new tab
June 26 (Reuters) - Meta (META.O), opens new tab CEO Mark Zuckerberg has urged his lieutenants to explore partnerships with the popular prediction markets Polymarket and Kalshi as his company builds a similar app, the New York Times said on Friday, citing three employees with knowledge of the matter.
Meta and Kalshi did not immediately respond to requests for comment, while Polymarket declined to comment when contacted by Reuters. Reuters could not independently verify the report.
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The social media company's executives have said Arena, Meta's new prediction market app under development, will differ from Polymarket and Kalshi, which accept real-money wagers, because it will instead rely on video-game-like "points", the report said.
Prediction markets surged in popularity during the 2024 U.S. presidential election and have evolved into an asset class that lets investors wager on a variety of events, from monetary policy to sports tournaments.
But they have also drawn increasing scrutiny as well-timed trades ahead of U.S. President Donald Trump's major policy surprises have potentially led to millions of dollars in profits for unknown traders.
Zuckerberg's target demographic for Arena is 18- to 34-year-olds and Meta is aiming to reach at least 100 million monthly active "predictors" for the app, according to the report.
Arena is being tested internally and may not be released, the report said, adding that Meta plans to eventually integrate parts of Arena into Facebook and Messenger.
The Times first reported on Tuesday that Zuckerberg recently dispatched a small team at his company to create a smartphone app similar to Polymarket and Kalshi.
Reporting by Jaspreet Singh in Bengaluru; Editing by Vijay Kishore
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Tržby společnosti Meta Platforms meziročně vzrostly o 33 % na 56,3 miliardy USD díky růstu zapojení do AI. Na 2. čtvrtletí 2026 očekává tržby 58 až 61 miliard USD.
Key Takeaways Meta Platforms posted 33% year-over-year revenue growth to $56.3 billion, aided by AI engagement. META saw Reels watch time rise 10%, while AI-translated videos reach 500M weekly viewers. Meta Platforms expects Q2 2026 revenues of $58B-$61B as it expands AI infrastructure. Meta Platform (META - Free Report) is benefiting from its accelerating growth into artificial intelligence (AI), which is driving significant top-line growth and positioning the company for further upside.
META’s release of the Muse family of models and the upgraded Meta AI assistant has positioned the company as a leader in personal superintelligence, with billions of users now accessing these AI-powered features. This surge in AI-driven engagement is translating directly into top-line growth, as evidenced by a 33% year-over-year increase in total revenues to $56.3 billion for the first quarter of 2026.
The company’s focus on integrating AI into its platforms, which includes Facebook, WhatsApp, Instagram, Messenger, and Threads, is driving user as well as advertising engagements. AI is heavily dependent on data, of which META has a trove, driven by its more than 3.56 billion daily users. Meta Platforms continues to see strong engagement trends with Instagram Reels, where watch time increased by 10% and Facebook video time increased by 8% globally in the first quarter of 2026. AI-translated videos are now watched weekly by more than 500 million users on Facebook and Instagram. Threads continue to grow with more than 500 million monthly active users.
Meta Platforms’ generative AI advertising tools are gaining strong traction, with more than 8 million advertisers using at least one GenAI ad creative tool in the first quarter of 2026. Video generation tools improved conversion rates by more than 3% while adoption among small and medium businesses has been particularly strong.
Meta Platforms is spending heavily on expanding AI infrastructure, which is expected to benefit the company’s top-line growth. For the second quarter of 2026, the company expects total revenues between $58 billion and $61 billion.
META Faces Stiff CompetitionMeta Platforms is facing stiff competition from competitors like Snap (SNAP - Free Report) and Reddit (RDDT - Free Report) . Both Snap and Reddit are expanding their portfolio in the AI space.
Reddit’s investments in artificial intelligence (AI)-powered tools remain noteworthy. The launch and adoption of Reddit Max, an automated, AI-powered campaign tool, enabled advertisers to achieve a 17% reduction in cost per action and a 25% increase in conversion rate in the first quarter of 2026. About 50% of Max campaign advertisers now use AI-powered creative features, and brands like Cozy have reported a 35% higher ROAS and a 28% lower cost per acquisition with these tools.
Snap has reached 956 million monthly active users and 483 million daily active users in the first quarter of 2026, driven by the continued adoption of Augmented Reality Lenses, Spotlight and AI-powered features. Key growth drivers include its AI-powered automation solutions, AI Sponsored Snaps, Sponsored Snaps, Promoted Places, Dynamic Product Ads and subscription offerings, including Snapchat+, Memories Storage and Lens+.
META’s Share Price Performance, Valuation, and EstimatesMETA’s shares have lost 15.6% in the year-to-date period, underperforming the broader Zacks Computer & Technology sector’s return of 14.9%.
META Stock Performance
Image Source: Zacks Investment Research
META shares are overvalued, with a forward 12-month Price/Sales of 5.09X compared with the Internet - Software’s 3.54X. META has a Value Score of C.
META Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings is pegged at $33.01 per share, which has increased by a penny over the past 30 days. This suggests 40.53% year-over-year growth.
Meta Platforms currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Meta ustupuje od nuceného přeřazení zaměstnanců do AI školení a nově nechává rozhodnutí na jednotlivcích. Do týmu bylo minulý měsíc přesunuto 7 000 zaměstnanců.
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Meta CEO Mark Zuckerberg. Bloomberg/Getty Images Meta is walking back its stance on forcing engineers to join a task force focused on AI training, according to an internal memo obtained by Business Insider and four people familiar with the matter.
Last month, Meta reassigned 7,000 employees to units such as an Applied AI task force to help train Meta's coming AI models.
On Wednesday, Meta sent a memo about this task force, saying the company will now "defer to each individual's choice." The company sent the email to employees who had been "drafted," as some described its Applied AI task force.
"As I emphasized before, personal agency will remain at the heart of all opportunities at Meta: we will support employees in whatever decisions they make," the memo said.
"Of course, we'd prefer everyone to stay and push to SOTA together, but we defer to each individual's choice," it read, referring to state-of-the-art.
The memo went on to say that people in the unit would have preferential placement in other parts of the company due to staffing shortages.
Meta declined to comment for this story.
Some employees on Blind called the memo an "undraft."
The task force faced significant backlash last month from employees who compared the job to data labeling.
The reversal comes after chief technology officer Andrew Bosworth addressed a broader morale crisis at the company. During an internal "Tuesdays with Boz" session on June 2, Bosworth told employees that morale was "probably one of the worst it's ever been" in Meta's 20-year history, Business Insider previously reported.
In May, Meta laid off 10% of its staff, or 8,000 people.
Have a tip? Contact Charles via email at [email protected] or on Signal and WhatsApp at 628-282-2811. Contact Pranav via encrypted messaging app Signal at +1-408-905-9124, or email him at [email protected] or [email protected]. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely.
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Pranav Dixit You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Pranav Dixit is the Meta Correspondent at Business Insider based in the San Francisco Bay Area. He writes about Meta’s products, policies, and internal workings while examining how the company’s decisions shape how billions of people connect and communicate.Previously, Pranav was the India-based technology correspondent for BuzzFeed News, covering the impact of Silicon Valley’s largest companies on the culture, society, and politics of more than a billion people in South Asia. He has also been a senior news editor at Engadget and ran technology coverage at the Hindustan Times, one of India’s largest national newspapers.Pranav’s reporting has shed light on the human consequences of Big Tech’s quest for growth in emerging markets, and sparked widespread conversations about the impact of American technology companies on the Global South. In 2019, he won Syracuse University’s Mirror Award for a boots-on-the-ground feature about how WhatsApp misinformation sparked gruesome lynchings in rural India. He has also reported from Kashmir, a volatile geopolitical hotspot, documenting the world’s longest-running internet shutdown.His work has been widely cited by major national and international publications, and he has been featured on the BBC, Al Jazeera, and podcasts such as Vox Media’s Land of the Giants to discuss his work. He has also spoken in journalism classes including at UC Berkeley’s graduate journalism program. His writing has appeared in The Guardian, Vox, Time, The Information, and Al Jazeera.Pranav moved to the United States in 2021 from New Delhi, India, to be a fellow at Harvard University’s Nieman Foundation for Journalism, where he studied the evolution of the American tech press and ways newsrooms around the world can cover technology and society more effectively.Got a tip about Meta or anything else in Silicon Valley? Contact Pranav via encrypted messaging app Signal (+1408-905-9124), or email him at [email protected] or [email protected]. You can also reach him on WhatsApp at +857-753-3949 or DM him on X (@PranavDixit) or BlueSky (@pranavdixit.bsky.social).Pranav keeps sources anonymous. Please use a non-work device to reach out.Expertise: Meta, Facebook, WhatsApp, Llama, AI, Threads, Instagram, Mark Zuckerberg, social media, platforms, immigration
Charles Rollet You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Charles Rollet is BI's tech correspondent in San Francisco. Prior to joining BI, Charles worked at TechCrunch covering startups and VC. Charles is based in the Bay Area, where he enjoys hiking with his dogs. You can contact Charles securely on Signal at charlesrollet.12 or +1-628-282-2811.
Meta čelí poklesu morálky zaměstnanců na téměř 20leté minimum právě ve chvíli, kdy tlačí na rychlejší vývoj produktů s AI. CTO Andrew Bosworth označil firemní vysvětlení reorganizace za „otřesné".
Meta Platform’s NASDAQ: META last earnings report disappointed investors, leading shares to fall more than 8% to $611 afterward. This drop has so far indicated the start of a larger slide for the stock, as Meta has continued to tumble, recently falling below $575.
Meta Platforms Today
$558.48 -3.72 (-0.66%)
As of 03:17 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$520.26▼
$796.25Dividend Yield0.38%
P/E Ratio20.30
Price Target$840.60
The company’s increased capital expenditure guidance was the main culprit for that initial drop. Additionally, although Meta grew revenue by 33% year over year (YOY), the company did not make any substantial artificial intelligence product announcements, which likely added fuel for the bears.
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Unfortunately, as Meta looks to roll out such offerings, there appears to be significant internal turmoil at the company. Meta's Chief Technology Officer (CTO) recently made stark comments about employee morale, and a top AI executive recently left the firm.
While this may seem innocuous at first, it is important to remember that an investment in any stock is also an implicit bet on the people behind the ticker. Meta’s internal struggles are worth paying attention to, especially given the company’s current position. At the same time, Meta Platforms has made tangible progress with its AI strategy, and the machine won’t stop chugging amid the noise.
Morale Nears Basement Levels as Investors Eye AI Product DevelopmentThe question surrounding Meta in 2026 is whether it can justify hundreds of billions in AI spending based on advertising optimization alone. This creates a need for the company to develop other AI products to drive growth.
Against this backdrop, Meta recently laid off 10% of its employees, aimed at helping it cut down costs as AI spending rides higher. Just as significant was the company’s move to reallocate 10% of its remaining workforce to AI-related positions. This could allow the firm to more quickly develop the alternate AI revenue sources investors are watching for.
In that context, recent comments made by CTO Andrew Bosworth are somewhat concerning. In an internal meeting, Bosworth said employee morale is “maybe not the worst it’s ever been in 20 years here, but it’s probably up there. It’s definitely up there,” per Business Insider. In a staff memo, Bosworth also called Meta’s explanation of its AI restructuring to employees "atrocious."
For a company facing pressure to offset its AI spending with AI growth, employee morale sitting near a 20-year low is unlikely to help its mission. This is further exacerbated by the AI component of the restructuring, which appears to be a significant driver of dissatisfaction. Meta has undergone large-scale layoffs before, but this was the first time AI played a significant role in such a move.
Adding to the list of investor concerns is the departure of Emily Dalton Smith. Meta assigned Smith the task of leading improvements in internal AI usage among its employees. However, after only about two months in this role, Smith is leaving the Magnificent Seven company following a 10-year overall stint. While a single departure does not make or break a company, this suggests that even high-up, long-standing employees are unhappy with Meta’s AI shakeup.
Meta’s AI Successes: Sky-High Advertising Growth & Muse Spark DevelopmentDespite this, it is worth detailing the important successes that Meta has achieved recently. As noted, Meta’s growth hit 33% YOY last quarter. This was the company’s fastest growth rate in four years and a huge acceleration compared to 24% YOY growth in the prior quarter. Excluding pandemic-era spikes in revenue growth seen as people spent more time online, Meta’s growth last quarter was its fastest since 2018.
This is largely a product of Meta's use of AI to improve its ranking and recommendation algorithms. Increasingly, its apps are showing users content and ads they are more likely to engage with, boosting growth.
Furthermore, Meta released its latest Muse Spark model in April. According to AI model evaluation site Artificial Analysis, Muse Spark is by far the company’s most intelligent model. On its Intelligence Index, Muse Spark currently holds a score of 43. This is more than three times higher than Meta’s previous model Llama 4 Maverick, which has a score of 14. However, Muse Spark is still well behind Anthropic and OpenAI’s top models, which have scores of 55 to 60.
Nonetheless, Meta has dramatically improved its top model. Furthermore, Muse Spark’s score is now within spitting distance of Alphabet’s NASDAQ: GOOGL top model, Gemini 3.1 Pro Preview, which has a score of 46. Importantly, the shift came just 10 months after Meta hired Alexandr Wang as its first Chief AI Officer. This demonstrates that Meta can still improve quickly—providing confidence that it can do the same going forward.
Current Price$562.52High Forecast$1,015.00Average Forecast$840.60Low Forecast$700.00Meta Platforms Stock Forecast Details
Meta’s internal turmoil is not exactly what investors want to see as the company aims to provide new revenue-generating AI products. Infighting could delay that development exactly when Meta needs to accelerate it.
Still, the huge improvement in top-line growth and the quick turnaround of Muse Spark are testaments to the company's AI success. While internal issues may slow it down, they are very unlikely to stop Meta from delivering key AI improvements in the long term.
Notably, as Meta shares have slid, Wall Street analysts continue to take a bullish outlook on the stock. The MarketBeat consensus price target of $840 implies upside of about 50%.
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Meta Platforms CEO Mark Zuckerberg arrives outside court in Los Angeles, California, U.S., February 18, 2026. REUTERS/Mike Blake Purchase Licensing Rights, opens new tab
June 23 (Reuters) - Meta (META.O), opens new tab CEO Mark Zuckerberg recently dispatched a small team at his company to create a smartphone app similar to Polymarket and Kalshi, the New York Times reported on Tuesday, citing two employees with knowledge of the matter.
The app will probably rely on a video game-like points system instead of users wagering money, though the company has not ruled out betting real money eventually, according to the report.
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The company did not immediately respond to a Reuters request for comment. Reuters could not independently verify the report.
Prediction markets surged in popularity during the 2024 U.S. presidential election and have evolved into an asset class that lets investors wager on a variety of events, from monetary policy to sports tournaments. Trading platforms such as Robinhood (HOOD.O), opens new tab and Interactive Brokers (IBKR.O), opens new tab have rolled out event contracts.
The Times report said the app is internally referred to as "Arena" by Meta that would function independently from its social networking apps including Facebook, Instagram, WhatsApp and Messenger.
Arena is one of several applications Meta is testing. Another of these standalone apps, Meta Photos, is designed to generate new forms of media, the report said.
Meta aims to grow the app by leveraging its large social networking audiences and directing them toward using it, according to the report. In April, the company reported 3.56 billion daily active people, a metric it uses to track unique users who open any one of its apps in a day.
Prediction markets could balloon to $1 trillion in annual trading volumes by decade-end, Bernstein said in April. But they have also drawn increasing scrutiny as well-timed trades ahead of U.S. President Donald Trump's major policy surprises have potentially led to millions of dollars in profits for unknown traders.
Reporting by Jaspreet Singh in Bengaluru; Editing by Joyjeet Das
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Meta rozšířila Instagram for TV na Samsung Smart TV a testuje nové funkce pro společné sledování. Firma uvedla, že čas strávený u Reels vzrostl o 10 % a video na Facebooku o 8 % globálně.
Key Takeaways Meta expanded Instagram for TV to Samsung Smart TVs, adding to Fire TV and Google TV reach. META is testing channels, Reel casting, Stories on TV and longer-form creator content. Meta said Instagram drove a 10% lift in reel time spent; Facebook video time rose 8% globally. Meta Platforms (META - Free Report) is benefiting from its strategic expansion of Instagram TV (IGTV) reach, leveraging the platform’s growing emphasis on video content to drive higher user engagement. The company’s focus on enhancing video experiences, including improvements to content recommendations and AI-driven personalization, has led to significant increases in time spent on video features such as Reels and IGTV.
Meta Platforms' expanding portfolio has been noteworthy. The company recently expanded Instagram for TV to Samsung Smart TVs in the United States, adding to its availability on Amazon Fire TV and Google TV devices. The company is also testing new features to make shared viewing easier, including interest-based channels, casting Reels from phones, Stories on TV and support for horizontal videos. META is exploring longer-form creator content, episodic series and live broadcasts tailored for the living room experience. The updates aim to make Instagram a more social, communal viewing platform while helping creators reach audiences on larger screens.
Meta Platforms' AI advancements facilitate the auto-translation and dubbing of videos, making IGTV content accessible to a broader, global audience. Over half a billion users on both Facebook and Instagram now watch AI-translated videos weekly. This broadening of reach increases the potential audience for IGTV creators and enhances the platform’s appeal to advertisers seeking to target diverse demographics with localized content. The company continues to see improvements on Instagram, which have driven a 10% lift in reel time spent, while Facebook saw an 8% increase in total video time globally, the largest quarter-over-quarter gain in four years.
Meta Platform’s strong portfolio is fueling robust financial results and is expected to benefit the company’s top-line growth. For the second quarter of 2026, the company expects total revenues between $58 billion and $61 billion.
META Faces Stiff CompetitionMeta Platforms is facing stiff competition from competitors like Snap (SNAP - Free Report) and Reddit (RDDT - Free Report) . Both Snap and Reddit are expanding their portfolio to compete in the rapidly growing digital ad market.
Reddit is continuing to grow as engagement rises and monetization gets better through a stronger performance ad stack. The company is benefiting from an increase in daily active users and weekly active users, along with a higher average revenue per user and more advertisers using tools like Reddit Max, Dynamic Product Ads and improved measurement. AI-led features, including translation and better discovery, are helping broaden the user base and deepen intent-driven use cases, while content licensing adds diversification.
Snapchat has reached 956 million monthly active users and 483 million daily active users in the first quarter of 2026, driven by continued adoption of Augmented Reality Lenses, Spotlight and AI-powered features. Key growth drivers include its AI-powered automation solutions, AI Sponsored Snaps, Sponsored Snaps, Promoted Places, Dynamic Product Ads and subscription offerings including Snapchat+, Memories Storage and Lens+.
META’s Share Price Performance, Valuation, and EstimatesMETA’s shares have lost 14.6% in the year-to-date period, underperforming the broader Zacks Computer & Technology sector’s return of 20%.
META Stock's Performance
Image Source: Zacks Investment Research
META shares are overvalued, with a forward 12-month Price/Sales of 5.15X compared with the Internet - Software’s 3.66X. META has a Value Score of C.
META's Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings is pegged at $33.01 per share, which has increased by a penny over the past 30 days. This suggests 40.53% year-over-year growth.
Meta Platforms currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
EU podle Bloombergu zpřísňuje vyšetřování společnosti Meta kvůli tomu, že Facebook a Instagram mají být navržené tak, aby děti „připoutaly“ k používání. Hrozí jí pokuta až 6 % globálních tržeb.
The European Union is reportedly escalating a probe into Mark Zuckerberg’s Meta over allegations that its social media apps are intentionally designed to get kids hooked.
The European Commission, the EU’s competition watchdog, is close to issuing its preliminary findings – including that Facebook and Instagram are built with addictive features, Bloomberg reported, citing people familiar with the matter.
EU officials have yet to determine exactly when they’ll announce the findings, the report said.
Meta has accused the EU of targeting American firms with major fines. Bloomberg via Getty Images The investigation was first announced in May 2024 and focused on Meta’s potential violations of the EU’s Digital Services Act – which requires Big Tech firms to police content on their platforms.
Meta did not immediately return a request for comment.
EU officials previously said they were concerned that Facebook and Instagram “may stimulate behavioral addictions in children” as well as “rabbit-hole effects” – where kids keep using the apps in a way that causes their physical and mental health to suffer.
The commission had also expressed concern about the effectiveness of Meta’s age verification practices.
The issuing of preliminary findings are a crucial step in the European Commission’s investigation process. Meta will have an opportunity to propose remedies that address the bloc’s concerns.
Under the DSA, companies can be fined as much as 6% of their global sales if they are unable to satisfy regulators.
Meta faces an escalating probe in the EU. wichayada – stock.adobe.com Based on Meta’s fiscal 2025 revenue, that would mean a potential fine of about $12 billion – though the EU’s penalties to date in similar cases have come in far below that level.
Any severe crackdown on Meta could escalate tensions between the European Union and the Trump administration, which has repeatedly criticized EU officials for what it says are discriminary actions against US tech firms.
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The EU’s fines have become a sticking point in trade talks between the two sides.
Zuckerberg himself has described the EU’s fines as “almost like a tariff” that have become “sort of like an EU-wide policy for how they want to deal with American tech.”
Separately, Meta is facing a wave of more than 2,000 lawsuits in the US over allegations that its app have fueled social media addiction and online harm among kids.
In March, Meta lost a pair of historic court cases – one in New Mexico and another in Los Angeles – in what critics described as a “Big Tobacco moment” for the tech industry.
Trumpova administrativa tlačí Meta, aby dobrovolně podrobila své AI modely vládní kontrole kvůli rostoucím bezpečnostním obavám. Meta je podle NYT jediným velkým americkým vývojářem AI bez takové dohody.
People walk behind a logo of Meta Platforms company, during a conference in Mumbai, India, September 20, 2023. REUTERS/Francis Mascarenhas Purchase Licensing Rights, opens new tab
June 23 (Reuters) - The Trump administration is pressing Meta (META.O), opens new tab to submit its AI models for voluntary review, which would allow the government to evaluate their abilities and vulnerabilities, the New York Times reported on Tuesday, citing four people familiar with the confidential request.
The request was made in emails with the social media giant, the report said, as the administration steps up oversight of the AI industry.
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The Facebook parent, which launched the Muse Spark AI model in April, is the only major U.S. developer of AI technology that has not reached an agreement to voluntarily share its models with the federal government for review, according to the report.
"We share the administration's goal of advancing U.S. leadership on robust and secure frontier AI. While we are working through the details, we hope to sign the agreement soon," Meta told Reuters in an emailed response.
The U.S. Commerce Department did not immediately respond to a Reuters request for comment.
Earlier this month, the U.S. government ordered Anthropic to suspend access to its most advanced AI models for foreign nationals, citing national security concerns.
OpenAI and Anthropic had already been working with the U.S. government to test unreleased AI models, while Google DeepMind (GOOGL.O), opens new tab, Microsoft (MSFT.O), opens new tab and xAI agreed in May to provide the government early access to new models for national-security evaluations.
Concern is growing in Washington over the national security risks posed by powerful AI systems. By securing early access to frontier models, U.S. officials are aiming to identify threats ranging from cyberattacks to military misuse before the tools are widely deployed.
On June 2, President Donald Trump signed an executive order establishing a voluntary framework for AI developers to offer "covered frontier models" to the U.S. government for up to 30 days before releasing them to trusted partners.
Reporting by Jaspreet Singh in Bengaluru; Editing by Sahal Muhammed and Vijay Kishore
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