Meta Platforms, Inc. (META) saw significant stock fluctuations this summer, with shares dropping over 16% following disappointing earnings in April and July. Despite reporting a 28% revenue increase in the second quarter, key metrics such as earnings per share missed expectations, leading to increased investor concerns regarding escalating capital expenditures, which rose by 57% to $31.1 billion in the quarter. By the end of August, Meta’s stock had fallen 13% in 2026, while the S&P 500 gained over 10%.
However, in September, the company rebounded by nearly 30%, partly due to the successful launch of its AI agent, Muse, which reached as high as No. 3 in the U.S. App Store shortly after release. Analysts from JPMorgan highlighted that Meta is poised to leverage its AI investments for revenue growth beyond advertising; they upgraded Meta’s stock to Overweight and raised the price target from $640 to $820.
As of September 23, Meta will showcase its AI products in its Connect event, potentially shifting investor sentiment as the company navigates its historical levels of debt and capital expenditures. Notably, advertising revenue grew 27%, indicating a healthy core business as Meta seeks new monetization avenues.
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