Street View: Meta's AI bets strengthen long-term growth case
BUZZ-Street View: Meta's AI bets strengthen long-term growth case ** Meta META.O forecast Q4 revenue above Wall Street estimates and highlighted strong growth in its consumer AI agent app, Muse, while unveiling a new class of non-voting shares to help fund its AI expansion
** Shares of the Facebook and Instagram parent down 1% in very choppy premarket trading
MUSE OFFERS PLENTY TO LIKE
** Morgan Stanley ("overweight", PT: $820) says improving AI efficiency, growing Muse usage and potential monetization from AI agents, subscriptions and business tools provide multiple upside catalysts beyond the core ad business
** TD Cowen ("buy", PT: $850) says Meta is positioned to benefit from continued AI-driven gains in engagement and advertising, with Muse adoption and aggressive AI investment supporting longer-term growth
** Jefferies ("buy", PT: $875) says fourth-quarter forecast leaves room for upside, while the new Class C share structure gives Meta added flexibility to fund future AI investments
** MoffettNathanson ("buy", PT: $895) says Meta's early success with Muse has shifted the company from an AI bystander to a potential AI winner, with strong ad growth and AI-driven engagement supporting sustained revenue growth into 2027
(Reporting by Rashika Singh in Bengaluru)