What Needs To Be True To Buy Meta Stock Now?
Meta Platforms (META) launched its Muse personal AI agent app on September 8, 2026. Meta stock rose 27% over the past month, while the S&P 500 slipped 0.3%.
Investors are betting that Meta can earn money from Muse while its ad business funds its AI data centers. The stock rose on the app’s popularity, not on new earnings. So has Meta shown any sales from Muse yet?
Not Yet: Meta’s Results Came Before The Muse App
Meta last reported results on July 29, 2026, for the second quarter. Muse launched about six weeks later, so the app is in none of Meta’s reported figures.
Meta can point to the app’s popularity instead. Muse passed ChatGPT in Apple iOS downloads during the early phase after its launch. Meta has since announced Muse for Small Business, a version built for the workplace.
Management said on the July 29 call that personal agents will be the base for new revenue lines. Management did not name which new product would grow first when asked on that call.
OpenAI unveiled rival agents, called Dots, on September 29, 2026. Meta stock fell 1.8% the next day, against a 0.2% fall for the S&P 500.
Meta leans on advertising to pay for its data centers until it earns money from Muse.
Meta Needs Its Ads To Fund The Data Centers
Meta is managing that so far. The company earned $59.4 billion from ads in the second quarter of 2026, out of $60.8 billion in total revenue. Total revenue was 28% higher than a year earlier. Meta’s revenue has grown 23.8% a year on average over three years, against 5.8% for the S&P 500.
Meta is well placed to fund the data centers from its operating cash, management said on the July 29 call. Management expects capital spending, including finance lease payments, of $130 billion to $145 billion in 2026. The low end of that range was $125 billion before the July 29 call. Management gave no spending figure for 2027 when asked.
Management guided third-quarter 2026 revenue to $61 billion to $64 billion. The whole range is above second-quarter revenue. While Meta is covering the spending from operating cash for now, management said it is also using a greater mix of debt and partnerships.
How Much Cash Is Left After Meta’s Spending?
Only $784 million, in the second quarter of 2026. Free cash flow, the cash left after capital spending, came to that amount. Meta’s net income, its profit after all costs, was $15.8 billion in the same quarter.
Meta stock trades at 27.1 times its yearly profit, a ratio called the P/E, against 21.7 for the S&P 500. The P/E is built on profit, so you do not see in it how little cash was left. The ratio is higher after September because the price went up and reported profit did not change. The ratio comes down without a fall in price only if Meta earns more.
Meta stock is down 2.1% over the past twelve months, even after September’s rise. The S&P 500 returned 16.2% over the same period. September’s gain came on Muse’s popularity. That gain is what is at risk if Meta cannot earn money from Muse.
Meta’s next report covers the third quarter of 2026 and should arrive around late October, if Meta keeps to July’s timing. Revenue inside management’s range would show sales still rising from the second quarter. Investors could value the app on money earned if Meta reports a first sales figure for Muse.
How To Act On META?
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