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's new AI assistant Muse sent Planet Fitness shares tumbling on 23 September as investors assessed the threat to subscription-based business models. The stock was already down over 50% year-to-date before the latest decline. Unlike traditional chatbots, Muse autonomously executes complex tasks including identifying unused subscriptions and handling cancellations. This directly threatens Planet Fitness's business model, which generates recurring revenue from inactive "ghost members" who pay $10 to $25 monthly but find manual cancellation cumbersome. The fitness chain's low-cost model relies on high member-to-capacity ratios sustained by passive non-users. If AI tools cause structural churn rates to spike permanently, Planet Fitness may need to raise prices or adjust facility capacity, potentially compressing operating margins.
Meta has introduced AI-powered game creation tools at its Connect conference, causing Unity Software to fall 5%, whilst Roblox and AppLovin each dropped 1%. The company unveiled Horizon Create and Horizon Studio, enabling users to build 2D or 3D mobile games using text prompts on phones or web browsers. Horizon Create is a mobile app for phone-based game generation, whilst Horizon Studio offers browser-based creation with detailed controls. Games will be distributed across Facebook, Instagram, and Horizon platforms, with monetisation through in-game purchases and the Meta Horizon Creator Fund. The move marks Meta's entry into simplified game development, a space currently occupied by Unity, Roblox, and AppLovin. All content passes through Meta's safety systems before reaching players, with early access rolling out gradually.
Meta has unveiled the Muse Charm, a Tamagotchi-sized AI companion featuring a teddy bear avatar that interacts through voice. The handheld device, roughly the size of an Apple Watch, joins similar products like the Humane AI pin and Rabbit's r1 in attempting to bring AI to mainstream audiences. Unlike many AI hardware startups, Meta controls the hardware, software, and models. The device likely runs voice models locally whilst responses generate from Muse LLMs in the cloud. The Charm is expected to ship for Christmas, though pricing remains undisclosed. Critics question its value over smartphone apps, echoing concerns about Rabbit's R1. Meta's hardware experience gives it an advantage over competitors like OpenAI, which has enlisted Jony Ive to design its first AI handheld.
Amazon has blocked Meta Platforms' Muse AI shopping assistant from accessing its marketplace, escalating tensions over AI commerce control. Meta has been positioning Muse as an AI agent that helps users compare products and pricing across multiple online retailers, including Amazon. The block complicates Meta's efforts to expand AI shopping tools alongside partnerships such as its tie-up with Shopify. For Meta, the move highlights platform control risk and reinforces concerns that large partners can restrict routes through which the company tries to turn AI usage into commerce and payments revenue. Meta operates social, messaging and hardware products connecting billions of users and is using that reach to push deeper into AI commerce tools built on top of existing online marketplaces.
Meta has launched audio-only Ray-Ban smart glasses without cameras, starting at $349. The new glasses allow users to listen to music, make phone calls, and interact with Meta's Muse AI agent whilst being more lightweight than previous versions. Mark Zuckerberg denied the launch was a response to recent backlash against camera-equipped models, which some have dubbed "pervert glasses". He told Joanna Stern that product development takes years, making it impossible to have created these in response to recent criticism. However, privacy concerns about Meta's smart glasses have existed since their 2021 launch. Users have consistently worried about being filmed without consent, with some covering the LED recording indicator light from day one.