Meta Platforms stock has been on a tear lately thanks to the launch of personal assistant Muse-but the move into AI may end up costing the Facebook parent more than it's worth.
That's according to StoneX analyst Mark Zgutowicz, who wrote in a research note on Wednesday that he expects Muse to fuel rather than ease existing worries about Meta's massive spending plans.
Zgutowicz's rating on the stock is Hold.
"We...see Muse's materially higher infrastructure-intensity adding to, not relieving pressure from, Meta's existing ROIC debate," he said. ROIC refers to return on invested capital.
Shares slid 1% to $731.04 ahead of the market open. It is up 29% over the past month, rallying on Muse's surge to the top of the App Store charts.
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- Brando741319·00:11Good1Report