Meta Platforms stock was trading around $578 in pre-market activity after opening earlier at $571.55 and hitting an intraday high of $589.19, supported by analyst commentary and internal product reports. BofA Securities repeated its Buy rating on the company and kept its $810 price target intact - a level that implies roughly 40% upside from current levels - citing reports that Meta is preparing to introduce a consumer-focused AI agent, internally called "Hatch," within Instagram and WhatsApp as early as the first week of September.
According to the materials reviewed by the bank, Hatch is being built to run in its own virtual computing environment and to execute tasks autonomously. Descriptions of the agent include capabilities such as making online purchases, booking restaurant reservations, and handling email communications. The company is reportedly considering a premium subscription tier for the agent that could be priced at up to $200 per month.
Another analyst note from Bernstein added to the positive tone by forecasting that Meta may overtake Google Search in total advertising revenue before the end of 2026. The Bernstein projection highlighted that Meta captured nearly half of every incremental digital advertising dollar generated in the second quarter, and it attributed that strength primarily to AI-enabled improvements in ad targeting.
Reports also indicate Meta is aiming for an October release of its next flagship foundation model, codenamed "Watermelon." That model is expected to serve as the primary inference engine that will power Hatch after the agent’s initial launch, according to the same reports.
Meta’s relative resilience in pre-market trading stands out against a broadly softer U.S. equity tape. The S&P 500 was down 0.1% at 7,699.73, the Dow Jones Industrial Average declined 0.1% to 53,480.6, and the Nasdaq slipped 0.1% to 29,410.5. Competitors in the digital advertising arena, including Alphabet and Snap, are facing the same macroeconomic headwinds, but Meta’s AI-specific catalysts are providing a company-specific cushion.
Investors appear to be weighing the preliminary AI monetization signals against known near-term pressures. The company’s compressed free cash flow profile and its elevated capital expenditure guidance - $130 to $145 billion for 2026 - remain on the balance sheet and financial outlook. Nonetheless, the combination of the BofA reiteration and the Bernstein ad revenue forecast has given some market participants a fresh reason to emphasize the emerging AI revenue opportunity, keeping the stock anchored near its prior close of $578.02 despite the soft tape.
The market reaction reflects a focus on two linked elements: near-term product timing and longer-term monetization potential. Hatch’s purported consumer-facing functions and the possible high-end subscription price point speak directly to unit economics and potential revenue per user, while the Watermelon foundation model is positioned as the technical backbone meant to sustain those product-level capabilities.
How these elements play against the company’s cash flow and capital spending assumptions will be central to investor assessments in the coming quarters. For now, the combination of analyst support and reported product launches is underpinning Meta’s share performance in pre-market trading.