Meta Platforms Inc. runs a family of social apps including Facebook, Instagram, and WhatsApp to help people connect, share content, and participate in online communities. It also develops virtual reality hardware and experiences through Oculus and is exploring the metaverse. Most revenue comes from advertising, with tools that let businesses target audiences using data from its large user base, plus VR product sales and digital services. The company differentiates itself by owning multiple major social platforms, offering a scalable cross-platform ad platform, and investing in VR, AR, and AI to expand digital experiences and monetization opportunities.
Company Size
10,001+
Company Stage
IPO
Headquarters
Menlo Park, California
Founded
2004
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Meta Platforms' stock has declined roughly 7% from its late-September peak near $779 amid safety concerns over its Muse AI agent. The New York Times reports that Meta's leadership pushed the product to market despite internal awareness of significant safety shortcomings. Muse, launched on 8 September, has accumulated over 6.6 million downloads in approximately one month. However, approximately one-third of websites tested have blocked the agent's access, and major platforms like Amazon have refused to allow Muse to crawl their listings. Separate reporting revealed that Meta characterises its AI data centres as experimental "pilot models" to claim research tax credits, while telling investors those facilities accelerate every part of its business. This strategy reduced Meta's tax bill by an estimated $3.9 billion in 2025.
The race to develop AI agents is accelerating, with Meta's Muse topping Apple's App Store charts as OpenAI announces its competing Dots offering. Research shows that 30-40% of consumers already pay for AI services, with spending forecast to reach $50 billion next year. Companies are currently focused on building consumer habits around AI agents before introducing pricing. Meta's advertising revenue gives it an advantage in subsidising user adoption. City analysts estimate Muse could generate over $27 billion annually by 2030. Industry experts note that whilst OpenAI appears focused on enterprise customers, Meta's integration within its existing platforms provides easier access to small businesses already using Facebook. The competition is driving mainstream AI adoption, with consumer familiarity expected to accelerate workplace adoption of AI agents.
Meta Platforms launched Muse, an AI shopping assistant, on 8 September. The agent can search retail sites, compare prices, and complete purchases autonomously. It surpassed 5 million downloads and displaced ChatGPT at the top of Apple's US App Store charts. Meta shares have surged more than 17% since the launch. The technology raises questions about retail's future. Goldman Sachs described the shift as moving from "search and shop" to "delegate and approve." Companies benefiting from consumer inertia have struggled, with Planet Fitness falling nearly 12% and Booking Holdings dropping 11% since Muse's launch. Major retailers face varied challenges. Amazon blocked Muse from its platform whilst promoting its own Alexa for Shopping. Costco sees opportunity in AI validating its value proposition. TJX's treasure-hunt model and limited e-commerce presence may protect it from disruption.
US companies are expected to deliver strong third-quarter earnings growth, driven primarily by artificial intelligence-related firms. Analysts predict S&P 500 earnings will rise approximately 31% year-over-year, with two-thirds of that increase coming from the technology sector and AI companies including Alphabet, Amazon, and Meta Platforms. The tech sector's performance helped push the S&P 500 to a record high this week. Energy earnings are projected to surge around 115% due to rising oil prices amid geopolitical tensions. However, some strategists question whether this growth can match the second quarter's 54% year-over-year earnings increase. Semiconductor companies, major AI beneficiaries, expect earnings growth of about 136% in the third quarter, down from 158% in the second quarter. Investors remain concerned about sustainability, particularly regarding continued capital expenditure in AI infrastructure.
Worldwide spending on artificial intelligence is forecast to reach $2.59 trillion in 2026, up 47% from $1.76 trillion in 2025, according to Gartner. AI infrastructure accounts for $1.43 trillion this year, over 45% of total AI spending. The largest cloud and internet platforms are now committing more than $100 billion annually each to capital expenditures. Technology stocks have led the market, with the Nasdaq Composite up roughly 17% so far in 2026. Microsoft reported fiscal 2026 fourth quarter revenue of $90 billion, up 18%. Meta reported second quarter 2026 revenue of $60.80 billion, up 28% year over year. Broadcom reported third quarter fiscal 2026 revenue of $29.6 billion, up 86% year over year.