Meta Platforms has made a significant move in the artificial intelligence sector by confirming its acquisition of the AI agent startup Manus for a potential sum of up to $3 billion. This strategic acquisition is part of a broader investment initiative led by CEO Mark Zuckerberg, aimed at positioning the company as a formidable competitor against industry leaders like OpenAI and Google. The deal not only highlights Meta’s ambitions in AI but also its commitment to consolidating top talent and critical infrastructure.
Market sentiment towards Meta’s AI endeavors remains robust, reflected in its current valuation of $1.64 trillion. On the last trading day, shares closed at $650.41, down 1.47%. Despite this decline, analysts are largely optimistic; around 92% of the 71 analysts covering the stock maintain a “Buy” rating, with an average price target of $822.30, indicating a potential upside of over 26%. Technically, the stock must defend the support level of $643.50, which was tested recently. Investor activity presents a mixed outlook. While institutions like Financial Partners Group have increased their holdings, Meta’s Chief Operating Officer, Javier Olivan, sold shares valued at approximately $1.59 million.
This aggressive capital allocation strategy appears to be paying dividends. Meta’s AI-driven advertising product, Advantage+, achieved an annual revenue run rate of $60 billion in the third quarter of 2025, a notable tripling since the first quarter of the year.
Confirmed on Saturday, the Manus acquisition brings over $100 million in annual recurring revenue to Meta. The technology from Manus is expected to be integrated into both WhatsApp and the broader Meta AI platform. Notably, the Manus subscription service will continue operating independently, creating additional revenue opportunities for the parent company.
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A critical aspect of the deal involves Manus’s corporate history. Originally founded in China, Manus relocated its headquarters to Singapore in mid-2025. This history could attract scrutiny from U.S. regulatory bodies during the acquisition review process.
The purchase of Manus is not an isolated event; it follows closely on the heels of Meta’s substantial $14.3 billion investment to acquire a 49% stake in Scale AI. This strategic move sent ripples throughout the industry as Scale AI subsequently reduced its workforce by 200 employees, or 14% of its staff. In a surprising turn, both OpenAI and Google ended their partnerships with the data firm. Additionally, Scale AI’s CEO, Alexandr Wang, has transitioned to lead Meta’s superintelligence division.
Despite these ambitious expansions, Meta faces challenges ahead. The U.S. Virgin Islands has filed a lawsuit alleging deceptive advertising practices against the company. Instagram head Adam Mosseri acknowledged over the weekend that 2025 was marked by “AI slop”—a term he used to describe low-quality, AI-generated content. He pointed out that content authentication would be a central challenge for 2026.
As the financial community looks ahead, all eyes are now on the upcoming earnings call scheduled for January 28. The integration of Manus and the restructuring at Scale AI will be focal points of discussion, with investors eager for details on how these key strategic moves will influence Meta’s trajectory in the increasingly competitive AI landscape.
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