Zacks Investment Ideas feature highlights: Meta

Meta Platforms rebounded nearly 30% in September after a rough summer marked by stock declines despite strong revenue growth. The turnaround was driven by the launch of Muse, a personal AI agent that reached #3 in the U.S. App Store, and evidence that Meta's frontier AI models are competitive with OpenAI and Anthropic. JPMorgan upgraded the stock to Overweight with a $820 price target, citing Meta's expansion beyond advertising into AI products and compute capacity rental. The company's core ad business continues growing at 27%, while massive capex spending ($130-145B in 2026) now appears justified by tangible AI revenue opportunities.