Meta Platforms (META) shares jumped more than 4% on Wednesday after the company launched its Meta Business Agent, an artificial intelligence tool designed to automate customer interactions for businesses on WhatsApp, Messenger, and Instagram. The rally came as Morgan Stanley reiterated its top pick rating on the stock with a $775 price target, implying a 30% upside from current levels, even as concerns linger over the company’s heavy AI spending.
The Meta Business Agent can handle tasks such as answering questions, booking appointments, qualifying leads, and closing sales in local languages. Over one million businesses are already using an earlier version, and the expanded rollout will initially be free, with paid subscription tiers planned for later this year. CEO Mark Zuckerberg said at a London event that the agent will eventually “help you run your whole business.”
Meta’s stock has been under pressure in 2026, falling nearly 10% year-to-date and about 25% from its August 2025 peak near $800, wiping out roughly $500 billion in market capitalization. The decline has left it as the weakest Magnificent Seven performer, teetering on the edge of the S&P 500 top ten.
Morgan Stanley analyst Brian Nowak called the sentiment trough a buying opportunity. He highlighted four growth drivers, led by Meta AI, where even light usage — less than a third of 3.5 billion daily active users making a single query per day — could generate $10 billion in annual revenue and lift earnings estimates. Subscription services could add another $7 billion. Nowak also pointed to improved engagement: Meta’s in‑house AI tool, Muse Spark, boosted time spent on Instagram Reels by 10% and Facebook video by 8%, the best engagement figures in four years.
Fundamentally, Meta delivered strong Q1 revenue of $56.3 billion, beating forecasts, and guided Q2 revenue to $58–$61 billion. The new agent platform integrates with Shopify, Zendesk, and Shopee, broadening its reach. Still, investors remain cautious about Meta’s $600 billion total capital expenditure plan, including $350 billion over the next two years, and the ongoing cash drain from Reality Labs.
