Key Highlights
- META shares have gained 10% following the September 8 debut of Muse, the company’s consumer-focused AI agent
- Citi maintains Buy recommendation with $800 price objective and establishes upside 90-day catalyst watch
- Meta’s Chief AI Officer reports Muse achieves higher daily U.S. download rates than Threads, WhatsApp, and Facebook
- The company introduced Meta One subscription service, quickly accumulating 15 million subscriptions and trial users
- Second quarter revenue reached $60.8 billion, representing 28% year-over-year growth, while EPS of $6.18 fell short of the $7.19 forecast
Meta Platforms shares are changing hands at $681.90 during Thursday’s premarket session, marking a 1.1% increase and positioning the stock for its fifth consecutive daily advance. META has appreciated 10% since September 8, coinciding with the company’s introduction of Muse, its personalized AI agent.
Alexandr Wang, Meta’s Chief AI Officer, characterized Muse as “the biggest consumer AI launch since ChatGPT” in an X platform post. Wang further revealed that Muse is generating higher daily U.S. download volumes than Threads, WhatsApp, and Facebook combined.
On Thursday, Citi analyst Ronald Josey established an “upside 90-day catalyst watch” for META in anticipation of the company’s Meta Connect conference scheduled for next week. Josey maintained his Buy recommendation alongside an $800 price objective.
Josey indicated he has “been impressed with the experience” offered by Muse and highlighted robust download figures as an encouraging indicator.
Moving forward, Citi anticipates the Meta Connect conference will feature updates on Meta’s AI product development strategy. Josey also mentioned that Meta will shortly introduce an enhanced AI model internally referred to as “Watermelon.”
“We believe META’s product roadmap is becoming clearer suggesting multiple product catalysts ahead,” Josey wrote.
Meta One Creates Additional Revenue Stream
This week, Meta officially introduced Meta One, a subscription offering that provides expanded AI usage capabilities and professional features throughout Facebook, Instagram, and WhatsApp.
The subscription service has rapidly accumulated 15 million paid subscriptions and active trial accounts. Rosenblatt analyst Barton Crockett suggested Meta One has potential to generate several billion dollars in annual recurring revenue within the next few years.
Crockett noted that Meta One “builds upon momentum Meta is realizing with its new Muse personal agentive capability, which continues to stand near the top of app store rankings since its Sept. 8 launch.”
Rosenblatt maintains a Buy rating for META with an $886 price objective. JPMorgan has similarly identified enhanced AI monetization strategies and stronger advertising metrics as favorable developments.
Second Quarter Results and Institutional Holdings
Meta’s latest financial report, published July 29, disclosed second quarter revenue of $60.8 billion, reflecting 28% year-over-year expansion and exceeding the $60.22 billion analyst estimate. Earnings per share registered at $6.18, falling below the $7.19 consensus forecast.
Institutional shareholders control 79.91% of META shares. George Kaiser Family Foundation expanded its position by 432.5% during Q2, acquiring an additional 2,967 shares.
META’s mean analyst price objective stands at $788.88, accompanied by a “Moderate Buy” consensus rating. Four analysts assign it Strong Buy ratings, 34 rate it Buy, and nine maintain Hold recommendations.
Meta announced a quarterly dividend payment of $0.525 per share, scheduled for distribution on Sept. 28 to shareholders registered as of Sept. 21. The ex-dividend date is Sept. 21.
The stock commenced Thursday trading at $673.31. Its 12-month trading range extends from $520.26 to $790.80.
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