KeyBanc’s Justin Patterson says Meta’s stock rebounded as AI products gain traction, with the Muse AI launch and device cycle helping recast Meta as a leader. He says Muse downloads and business integrations could lift engagement and revenue estimates.
Patterson said Meta had traded at its widest price-to-earnings discount to Google in about a decade, but has since closed that gap and returned to historical valuation levels. He said some multiple expansion may remain, while the next phase depends more on revenue revisions. He sees a path to more than $40 in 2028 earnings if new revenue streams scale and offset some operating expenses.
Patterson said Meta reset its AI strategy last year, shifting away from Llama and forming the MSL group, Superintelligence Labs. He cited more frequent model updates since an initial release in April as evidence of the change.
