Meta Platforms has purchased AI agent startup Manas. Should you buy META stock?

Artificial intelligence (AI) stocks have been at the center of Wall Street's attention lately, but behind the headlines and hype, investors are seriously looking for companies that can turn AI ambitions into real-world products and lasting profits. Not all tech giants have been able to manage that balance, so key moves in AI remain important to the market.

That's exactly what refocuses the Meta Platform (META). The company's recent acquisition of AI agent startup Manus is more than just a headline-grabbing deal. This is a clear signal that Meta wants AI to play a deeper, more practical role across its apps and business tools. Manas' technology is built to handle everyday tasks such as research, coding, and data analysis, and AI could soon become essential in these areas.

For long-term investors, this move raises important questions. Does acquiring Manas make META stock even more attractive at this point?

metastock performance

Meta Platforms is the parent company of Facebook, Instagram, WhatsApp, and other social apps used by over 3.5 billion people every day. It is dominating digital advertising and is actively pivoting towards AI and the Metaverse. Unlike pure AI startups, Meta combines a technology platform with a large social network ecosystem. The company currently has a market capitalization of $1.7 trillion and is a member of the “Magnificent 7” elite group.

Meta stocks rebounded strongly in 2025. The stock is up more than 13% year-to-date (year-to-date) on strong ad sales and optimism about AI. On the chart, the stock is above its 50-day moving average, indicating continued momentum, and well above its mid-April lows.

Given the rally, META's valuation appears to be overvalued, with metrics such as its price-to-book ratio of 9, well above the sector median of 2, indicating the stock is overvalued. Additionally, the price-to-sales ratio of 9 is significantly higher than the sector median of 1, further highlighting its overvaluation. However, investors should note that high-growth stocks often trade at premium multiples, reflecting expectations for improved future sales and earnings.

Acquisition News: Manas Deal

December 30th, Reuters Meta reported that it has agreed to acquire Manus, a startup that claims to develop the world's first general-purpose AI agent. Manas' technology can autonomously perform tasks with minimal prompting (beyond typical chatbots), and the company relocated from China to Singapore in early 2025. “Meta will operate and sell Manas’ services and integrate them into consumer and business products, including Meta AI.” Reuters he pointed out. Rosenblatt analyst Barton Crockett praised the fit with Meta's vision, calling it a “natural fit for Meta's rapidly growing WhatsApp SMB footprint that extends to Mark Zuckerberg's agent-rich personal AI vision.”

In reality, the Manas acquisition should help Meta offer more advanced assistant-like features to users and advertisers. Investors will be watching to see how quickly Manus' technology can be implemented into products, such as Meta's consumer AI and business tools. But Manus' Chinese roots could invite U.S. scrutiny amid geopolitical tensions.

Overall, this move signals that Meta is doubling down on AI, which could accelerate future revenues through better ad tech and new AI services if regulators don't intervene.

Metaplatform outperforms third quarter revenue

Meta Platforms' third-quarter revenue rose approximately 26% year over year (YoY) to $51.24 billion, beating consensus. Despite the year-over-year cost increase, operating income remained close to historical levels, with operating margins of approximately 40%. Total costs and expenses increased approximately 30%, reflecting increased AI-related spending.

Net income for the quarter was $2.71 billion, with diluted EPS of $1.05, as Meta recorded a one-time non-cash income tax provision of approximately $15.93 billion related to recent tax legislation. Excluding this charge, adjusted net income would have been approximately $18.64 billion, or approximately $7.25 per share.

Management indicated that there will be more spending on AI in the near term. Meta currently expects total expenses for 2025 to be approximately $116 billion to $118 billion, capital expenditures of approximately $70 billion to $72 billion, and fourth quarter revenue of approximately $56 billion to $59 billion.

Expectations for increases in taxes and spending weighed on sentiment. Analysts note that while the underlying business, advertising demand and user metrics remain largely healthy, investors will want to keep an eye on the pace of execution and monetization of AI builds.

What are analysts saying about META stock?

Wall Street is generally optimistic about the meta. Big banks are seeing big gains, supported by strong advertising and Meta's long-term AI vision.

In mid-December, Morgan Stanley reset the company's rating to “overweight” and set a one-year price target of approximately $853, representing 30% upside from the current price. Despite the increase in spending, the company is optimistic that Meta's expanded advertising capabilities will increase revenue.

Goldman Sachs maintained a buy rating, but analyst Eric Sheridan raised his price target to $870.

RBC Capital Markets lowered its target by about $810, below $840. The company said most investors view Meta's AI activities as untested and, if successful, could support long-term revenue growth.

By contrast, Barclays and Raymond James lowered their targets to $770 from $825 on concerns that high costs and large capital expenditures would narrow returns in the short term.
Overall, analysts see continued upside if AI-driven advertising maintains its momentum, with a consensus rating of “strong buy” and an average 12-month price target of $840, suggesting an upside of about 26% from here.

On the date of publication, Nauman Kahn did not have (directly or indirectly) any positions in the securities mentioned in this article. All information and data in this article is for informational purposes only. For more information, please see the Barchart Disclosure Policy here.