Meta Stock Rises on Bullish Analyst Reports Highlighting AI Agent Launch

Meta Platforms (META) stock gained in pre-market trading, bucking a slight downturn in the broader market, as investors weighed bullish analyst reports on the company's artificial intelligence monetization strategy.

BofA Cites Imminent AI Agent Launch

BofA Securities reiterated its Buy rating and $810 price target on Meta, representing approximately 40% upside from its prior close of $578.02. The bank's confidence is based on reports that Meta is preparing to launch its consumer-focused AI agent, codenamed "Hatch," within its Instagram and WhatsApp platforms as early as the first week of September.

According to the reports reviewed by BofA, Hatch is designed to autonomously perform tasks for users, such as making online purchases and restaurant reservations. The note also indicated that Meta is considering a premium subscription tier for the service, potentially priced as high as $200 per month.

Bernstein Forecasts Ad Revenue Leadership

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Adding to the positive sentiment, analysts at Bernstein published a separate projection forecasting that Meta is on a trajectory to surpass Google Search in total advertising revenue before the end of 2026. The firm attributed this expected shift to Meta's AI-powered improvements in ad targeting.

Bernstein's analysis noted that Meta captured nearly half of every incremental digital advertising dollar generated in the second quarter, highlighting its growing dominance in the market. Reports also point to an October release for Meta's next major foundation model, codenamed "Watermelon," which is expected to become the core engine for the Hatch agent after its initial launch.

Market Context and Outlook

The stock's pre-market strength was notable as major U.S. indices, including the S&P 500 and Nasdaq, were trading slightly lower. The positive analyst commentary appears to be providing investors with a fresh rationale to look past near-term headwinds, such as Meta's elevated capital expenditure guidance of $130–$145 billion for 2026, and focus instead on the company's emerging AI-driven revenue streams.