Meta Platforms Inc. (NASDAQ: META) could strengthen its position in the next phase of the artificial intelligence race through its new agentic AI app Muse, according to Tony Wang, portfolio manager at T. Rowe Price's Science & Technology Fund. Wang Sees Distribution Advantage For Meta
Wang told CNBC on Wednesday that Meta's first major AI payoff came through digital advertising, where AI helped improve returns. He sees agentic AI as a potential second leg of growth.
Meta holds an advantage because it can distribute AI agents across Instagram, Facebook and WhatsApp, Wang said. Those platforms also give Meta access to user context that could make its consumer agents more useful.
"I think Meta has a distribution advantage," Wang said.
He described the emerging market as the "battle of the agents" and said Meta is competing for a potentially important position as AI systems move beyond answering questions toward completing tasks.
Muse Adds Transaction Capability
Wang highlighted Muse's ability to move from research to transactions as an important step.
Unlike traditional large language models that primarily help users research information before sending them elsewhere to make a purchase, Muse can negotiate and, with user permission, complete purchases.
Wang said that capability requires significant security and user trust but represents a meaningful improvement in AI usefulness.
He added that the market does not have to become winner-take-all, but Meta's combination of context and distribution could support its position.
New AI Use Cases Could Sustain Investment Cycle
Wang said new applications remain critical for extending the broader AI investment cycle.
"It definitely is a step-function improvement, and I think that's what we kind of need in this like AI trade, uh, to continue is like new new use cases here," Wang said.
He said investors should focus on whether agents can spend more time completing tasks and improve productivity. Greater usage could increase demand for semiconductor bottlenecks such as memory and networking.
Wang also sees opportunity in enterprise software when companies provide important context that allows AI agents to help customers accomplish more. However, he warned that software businesses offering AI merely as a feature could face greater risk as competition intensifies.
Analyst Outlook
Meta trades at a price-to-earnings ratio of about 24.6. Analysts have a consensus Buy rating and an average price forecast of $768.81.
Rosenblatt maintained a Buy rating on Aug. 27 and raised its price forecast to $886. Benchmark maintained a Hold rating the same day. Wedbush maintained a Neutral rating with a $595 price forecast on Sept. 1.
Top ETF Exposure
- First Trust Dow Jones Internet Index Fund (NYSE: FDN): 9.46% Weight
- Invesco AI and Next Gen Software ETF (NYSE: IGPT): 8.91% Weight
- Global X Social Media ETF (NASDAQ: SOCL): 8.76% Weight
Price Action
META Stock Price Activity: Meta Platforms shares were up 1.41% at $662.90 during premarket trading on Thursday, according to Benzinga Pro data.