Meta Platforms has acquired AI startup Manus for over $100 million, paying a 20x sales multiple for the firm. Manus offers a general-purpose AI agent that can perform tasks on virtual computers, aligning with Meta’s AI strategy. The synergies between Meta and Manus are expected to enhance Meta’s AI capabilities, positioning the firm closer to industry leaders like Google and OpenAI.

Despite concerns about AI monetization and growing capex bills, Meta is undervalued with a fair value estimate of $850 per share. The firm’s digital ad business is predicted to strengthen with AI-powered advertising tools, leading to an uplift in advertising revenue in 2026. Investors can expect Meta’s stock to show signs of growth as AI integration progresses.

Read more at Morningstar: Meta: Manus Purchase Makes Sense