TLDR
- Meta’s stock has climbed 27% over the past four weeks, though it’s still down about 1% over the past 12 months.
- The company’s new AI agent, Muse, has topped iOS download charts and reportedly passed 5 million downloads.
- Meta launched a new Meta Enterprise Platform to sell AI tools to other businesses.
- Meta settled many state lawsuits over alleged harm to young users, agreeing to pay up to $18 billion over a decade.
- QRG Capital Management increased its Meta stake by 5.5% in the second quarter, and Wall Street holds a “Moderate Buy” rating with a $787.86 average price target.
Meta Platforms (META) stock closed at $725.93 on Friday, up 0.1% on the day. The stock has gained 27% over the past month, a sharp turnaround after a rough stretch.
Over the past 12 months, META is still down roughly 1%. But recent momentum suggests the tide may be turning.
Much of the renewed interest centers on Muse, Meta’s personalized AI agent released on September 8. It quickly became one of the most downloaded apps in the U.S.
Reports now say Muse has surpassed 5 million downloads. JPMorgan analysts noted the free-access approach could pressure subscription rivals while opening new advertising and commerce opportunities.
Muse and the Monetization Question
Muse is free up to a point, with a paid tier for extra features. But the bigger opportunity may be commerce.
Meta has said it plans to charge merchants when Muse helps users complete purchases. That could turn a popular app into a real revenue engine, assuming adoption keeps growing.
The company is also expanding Muse for small businesses, tying AI tools directly to advertising and sales. That’s a logical next step for a company that still earns most of its money from ads.
Competition is heating up fast, though. OpenAI launched its own personal AI agent, Dots, and Google and Apple are reportedly working on similar products too.
Meta also announced a new venture on September 28 called Meta Enterprise Platform. It will sell AI tools and software to other companies, built on the same infrastructure Meta has used internally.
The company already has deep relationships with businesses through its advertising ecosystem. That could give it a head start over newer entrants.
Legal Settlements and Investor Activity
Meta has also cleared up a chunk of its legal overhang. The company settled many lawsuits brought by a bipartisan group of state attorneys general over alleged harm to young users.
Meta agreed to pay up to approximately $18 billion over a decade, with part of that contingent on actions by YouTube and TikTok. It will also add new protections for teens on its apps.
More lawsuits remain, but resolving this major group of claims removes a source of uncertainty that weighed on the stock.
On the institutional side, QRG Capital Management increased its Meta position by 5.5% in the second quarter. The fund now holds 372,579 shares worth about $209.9 million.
Other funds made smaller moves too. Advantage Trust Co, Philadelphia Investment Partners, and Axiom Investment Management all opened new positions during the quarter.
Analysts remain largely positive. Meta carries a “Moderate Buy” consensus rating with an average price target of $787.86, even as some firms have trimmed their targets.
Not everything is rosy. Meta’s AI spending is expected to top $130 billion, and free cash flow has declined as a result.
Insider selling has also drawn attention. COO Javier Olivan and board member Christopher Cox both sold shares in late September under pre-arranged trading plans.
Meta last reported earnings on July 29, posting $6.18 EPS against estimates of $7.19. Revenue came in at $60.80 billion, above the $60.22 billion analysts expected, with quarterly revenue up 28% year over year.
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