Meta’s AI Bet Faces Market Skepticism Despite Morgan Stanley’s Bullish $775 Target

Meta Platforms' stock remains under pressure, down 10% year-to-date and 25% from its 2025 peak, erasing $500 billion in market value. Yet Morgan Stanley sees 30% upside, maintaining a $775 price target as the company doubles down on AI integration.

The newly launched Meta Business Agent—a conversational AI for WhatsApp, Messenger, and Instagram—could become a $10 billion revenue stream if just one-third of Meta's 3.5 billion daily users engage with it. Early adoption shows promise: over one million businesses already use precursor versions.

CEO Mark Zuckerberg's bold claim that the AI agent will 'eventually help you run your whole business' faces its first test after Q1 revenue beat ($56.3 billion) and strong Q2 guidance ($58-61 billion). The free rollout precedes planned subscription tiers—a monetization playbook familiar to crypto markets.