Key Morningstar Metrics for Meta Platforms

• Fair Value Estimate: $850.00
• Morningstar Rating: ★★★★
• Morningstar Economic Moat Rating: Wide
• Morningstar Uncertainty Rating: High

Meta Stock Update

Meta Platforms META has acquired Singapore-based artificial intelligence startup Manus, which offers subscribers a general-purpose AI agent. We think Meta’s strategy is to pair its massive distribution advantage with technology that people can actually use. Manus’ annual recurring revenue is estimated to be north of $100 million, which implies Meta paid a 20x sales multiple for the firm—a quite affordable price, considering current AI valuations.

When considering how Manus fits into Meta’s AI strategy, it is important to understand what it does. Manus is essentially an agent that can spin up virtual computers to perform tasks. We see this acquisition as Meta’s way of making a tangible play in the AI assistant space.

The Meta and Manus LLM Synergies

While we don’t know what Manus’ profitability looks like, we do know that the firm was leveraging other models, such as Anthropic’s, on the back end. We expect Meta to put in its own models once they’re up to scratch, which will create another utilization/monetization angle. Strategically, we don’t think Meta would’ve acquired Manus if the firm wasn’t confident in its own model strategy. The synergies are at their highest if Manus becomes powered by Meta’s large language models.

We expect Manus’ automation-led prowess to be a key piece of the firm’s next model launch, which we estimate will happen in mid-2026 and will bring Meta within punching distance of other frontier labs, such as Google, OpenAI, Anthropic, and Grok.

Meta Stock Valuation

We think Meta is materially undervalued relative to our fair value estimate of $850 per share. We think investors are concerned about AI monetization and growing capex bills. While we think those worries are valid, we believe the firm’s massive digital ad business stands to grow even stronger with AI-powered advertising tools. We expect clear signs of an AI-driven advertising uplift in 2026.