META is a strong buy with a $900 target over 12 months at near 15x estimated 2028 earnings; the upside needs ad strength and the macro backdrop to persist plus real transaction-fee and enterprise revenue, while Muse's 10 million users do not yet mean enterprise dollars amid security and privacy concerns.

For more information on Meta's earnings and the state of the AI market We have exceeded revenue expectations. Ad impressions and pricing figures increased by 10%, and I think 14% in pricing.

To what extent are we already seeing how artificial intelligence improves Meta's advertising revenue? I believe you have pointed out the most important indicators, which are the key figures for the third quarter, where growth exceeded 25%, and the forecasts for the fourth quarter.

I think this also applies to our view, where we expect growth of at least 15%, and perhaps even into the early twenties, during 2027 and 2028.

I would say that investments in artificial intelligence are yielding tremendous benefits for their core business, specifically in advertising. In fact, this sector is growing at more than twice the rate of what we see in the digital advertising industry in general.

Therefore, the benefits are clear in terms of additional growth.

We believe this growth will not stop , and they will have clear opportunities to diversify their revenues and generate new sources of income from artificial intelligence over the next two years.

Yaqoub, we saw the company exceed revenue expectations and raise its forecast for the fourth quarter, but the stock fell by more than 5% this morning. How do you view these results?

Is the market saying, "Yes, your core advertising business is strong, but the price of winning in AI has become too high?" You have stated that explicitly.

Investors were initially enthusiastic , but later noticed that there were many challenges. We have seen many news updates, whether from Apple, Amazon or others. The impact of artificial intelligence, which excites investors, has not yet appeared in actual earnings, as it was announced late in the third quarter.

But we also see the challenges of the impact of artificial intelligence on control , and what that could translate to financially.

Angelo, you have a $900 price target and a strong buy recommendation for Meta stock. What will it take to reach this price over the next 12 months? Is it Muse ?

I think Muse will play a pivotal role in all of this. In our opinion, the reason we raised our recommendation for it earlier this year to "strong buy" is the valuation aspect. The stock price is still trading after retreating from its highs , with the price-to-earnings ratio estimated at around 15% based on 2028.

So, as long as we believe they will continue to perform well, we need the positive macroeconomic outlook to continue, and the advertising sector to continue to thrive . If this situation continues, and they begin to show real signs of profitability from their non-advertising revenues, as I mentioned, then the most important thing is to generate some transaction-based fees on this side, in addition to showing some success on the enterprise side.

This is a completely new field for them. Well, then we add to that what they are doing on the model side, and that will also generate significant revenue, as far as we know, over the next couple of years as it expands.

They have provided very strong evidence over the past weeks and months of what they have accomplished, both with the Muse Wonder and some of their previous prototypes over the past six months .

They said that once it becomes scalable, it will become a major revenue driver, but we need to discuss security concerns and how to measure them. I have mentioned the economic aspects and the potential for fraud and errors.

How do you view the future of Muse and what potential obstacles they might face, in addition to this widespread adoption we are witnessing with excellent numbers?

From our point of view , Muse faces a number of challenges, as Meta is known for its many errors , and has somewhat overlooked the challenges related to security and privacy. I personally expect Muse to face these challenges from an institutional perspective.

It is true that we will see a high demand from consumers, and we have already seen around 10 million users. But 10 million users in the consumer world does not necessarily mean $10 billion in revenue in the enterprise world.

They still have a lot to check and evaluate, specifically whether the agent can control what he does. This does not necessarily mean that the agent is capable of doing that or what his capabilities are.

They still need to invest time and resources to verify these capabilities in the future. Meta's stock fell by 5% today.