Meta Stock Rises Premarket as AI Plans Impress Street

Key Moments

Meta Platforms shares are trading near $578 in pre-market action, after recovering from an early drop to $571.55 and hitting an intraday high of $589.19.
BofA Securities reaffirmed its Buy rating and $810 price target, citing reports that Meta may roll out its consumer AI agent “Hatch” on Instagram and WhatsApp as early as the first week of September.
Bernstein projected that Meta could overtake Google Search in total ad revenue before the end of 2026, as AI-driven targeting supports strong incremental digital ad share.

Pre-market Trading Snapshot

Meta Platforms stock is trading close to $578 in pre-open activity, after initially slipping to $571.55 before rebounding and reaching a session high of $589.19. The stock is holding near its previous close of $578.02, even as the broader U.S. equity market is modestly weaker.

Instrument / Index	Level	Move
Meta Platforms (pre-open)	~$578	Recovered from $571.55 low; high of $589.19
S&P 500	7,699.73	-0.1%
Dow Jones	53,480.6	-0.1%
Nasdaq	29,410.5	-0.1%

BofA Reiterates Bullish View on Meta

Analysts at BofA Securities reiterated their Buy rating on Meta Platforms and maintained a price objective of $810, implying an upside potential of roughly 40% from current levels. The firm based its stance in part on reports that Meta is preparing to introduce a consumer-focused artificial intelligence agent, internally referred to as “Hatch,” within Instagram and WhatsApp. The reports indicate the rollout could begin as early as the first week of September.

According to materials reviewed by the bank, Hatch is being built to run inside its own virtual computing environment and is intended to independently execute tasks such as making online purchases, booking restaurant reservations, and managing email correspondence. The reports also suggest Meta is evaluating a premium subscription option for Hatch, with pricing discussed at up to $200 per month.

AI Roadmap: “Hatch” and “Watermelon”

In addition to the initial deployment of Hatch, reports signal that Meta aims to introduce its next flagship foundation model, codenamed “Watermelon,” in October. This model is expected to become the main inference engine supporting Hatch after its early release phase. Together, these initiatives form a key part of the company’s emerging AI monetization efforts.

Bernstein Sees Meta Overtaking Google Search in Ads

Adding to the positive sentiment, Bernstein analysts issued a separate outlook suggesting that Meta is on track to exceed Google Search in total advertising revenue before the end of 2026. Their analysis indicates that in the second quarter, Meta captured nearly half of every incremental digital advertising dollar generated.

The driving force behind this dynamic is the improvement in ad targeting delivered by Meta’s AI capabilities, which Bernstein views as the main mechanism reshaping competitive positioning in the digital advertising landscape.

Outperforming Peers in a Softer Market Tape

Meta’s early session strength stands out against a slightly negative overall market backdrop, with the S&P 500, Dow Jones, and Nasdaq each down 0.1%. Key rivals in online advertising, including Alphabet and Snap, are contending with the same macroeconomic pressures, but investors appear to be rewarding Meta’s AI-related catalysts, which are currently providing a company-specific tailwind.

Balancing Near-term Cash Pressures and Long-term AI Upside

The combination of BofA’s reaffirmed bullish stance and Bernstein’s revenue projections is encouraging investors to look beyond shorter-term issues. These include Meta’s constrained free cash flow profile and its elevated capital expenditure outlook of $130–$145 billion for 2026. The focus is shifting instead toward the potential revenue streams from Meta’s AI initiatives, including Hatch and Watermelon, which are helping support the stock near its prior close despite a generally weak market environment.