Meta Bets Big on AI With $2bn+ Manus Acquisition but Stock Is Not Impressed
Meta Platforms is closing out the year with a major artificial intelligence acquisition, agreeing to buy fast-growing startup Manus in...
Quick overview
- Meta Platforms has acquired Manus, a Singapore-based AI startup, in a deal reportedly valued at over $2 billion, highlighting its commitment to AI-led growth.
- Manus is recognized for its rapid scaling and innovative AI solutions, which could enhance Meta's product offerings, particularly within WhatsApp.
- Despite the acquisition news, Meta's stock performance remains cautious, reflecting investor concerns over rising costs and profitability challenges.
- The Manus deal is seen as a pivotal moment for Meta, with potential to transform its AI strategy, akin to past acquisitions of Instagram and WhatsApp.
Meta Platforms is closing out the year with a major artificial intelligence acquisition, agreeing to buy fast-growing startup Manus in a deal that underscores its long-term commitment to AI-led growth.
Meta Makes a Late-Year AI Statement
Meta Platforms has agreed to acquire Manus, a Singapore-based artificial intelligence startup founded by Chinese entrepreneurs, marking one of the rare instances in which a U.S. megacap technology company has purchased a high-profile AI firm with Chinese roots. While Meta did not formally disclose the purchase price, the Wall Street Journal reported that the deal value exceeded $2 billion.
The acquisition stands out not only for its size, but also for its timing. As 2025 draws to a close, Meta’s move reinforces the idea that artificial intelligence remains the company’s top strategic priority, even as investors continue to scrutinize the cost of pursuing leadership in the space.
From Startup to Scale at Unusual Speed
Manus has built a reputation for conducting deep research and executing complex, multi-step tasks on behalf of paying users. According to Crunchbase, the company last raised capital in April at a valuation of approximately $500 million, making Meta’s reported purchase price a significant premium.
Benchmark partner Chetan Puttagunta, whose firm invested in Manus, described the startup as one of the fastest-scaling AI products in recent memory. He said Manus reached a $100 million annualized revenue run rate at unprecedented speed, fundamentally changing how consumers interact with AI to complete real-world tasks.
That growth trajectory appears to have been a key factor behind Meta’s interest, offering both proven demand and a platform that could be expanded across Meta’s vast ecosystem.
Integration Without Disruption
Meta confirmed that the Manus service will continue to operate, while also being integrated into its broader product lineup. Analysts see particular potential within WhatsApp’s rapidly growing small- and medium-sized business user base, where AI-driven research and task automation tools could quickly gain traction.
Rosenblatt Securities analyst Barton Crockett described the acquisition as a “natural fit” with CEO Mark Zuckerberg’s vision of agent-based personal AI. He noted that, if execution delivers, the Manus deal could eventually rank alongside Meta’s acquisitions of Instagram in 2012 and WhatsApp in 2014 as transformative moments for the company.
Market Reaction Remains Measured
Meta shares rose 1.1% on Tuesday to close at $666.01 following news of the acquisition. Even so, the stock is up just over 11% for the year, underperforming several other megacap peers despite its central role in AI development.
Over the past month, Meta’s share price has been attempting to recover from a sharp autumn correction that erased nearly a quarter of its market capitalization. While the stock has stabilized, it continues to face technical resistance, reflecting lingering investor caution.
The recent rebound suggests improving sentiment, but not yet a full return of conviction.
Innovation Momentum Versus Cost Concerns
Announcements around new AI tools have helped improve the narrative around Meta’s innovation capabilities. Products such as “SAM Audio,” designed to enhance content creation and interaction through artificial intelligence, highlight the company’s ability to translate research into consumer-facing applications.
These developments have supported the stock at key technical levels, but they have not fully silenced concerns over Meta’s rapidly expanding cost base. Investors increasingly view technological leadership and financial discipline as inseparable, and Meta is being asked to demonstrate progress on both fronts simultaneously.
Technical Damage Still Shapes Sentiment
From a chart perspective, Meta’s earlier decline remains a reference point for many investors. After peaking near $796 in early October, the stock fell through several key support levels, including the psychologically important $600 mark.
Meta St0ock Chart Weekly – The 100 SMA Held Again as Technical Support
Although longer-term moving averages have recently provided support and attracted buyers, the recovery has lacked strong follow-through. This price behavior reflects uncertainty over whether the current bounce represents long-term accumulation or simply a pause as markets reassess valuation and strategy.
Strong Revenues, Thinner Margins
Meta’s most recent quarterly results illustrated the company’s dual reality. Revenue rose 26% year-on-year, supported by resilient advertising demand and steady user engagement across its platforms. On the surface, the business continues to demonstrate impressive scale and reach.
Beneath the headline growth, however, profitability came under pressure. Earnings per share declined to just over $1, weighed down by a sizable non-cash tax adjustment and, more importantly, by rising operating expenses.
The Core Challenge Ahead
Total costs increased by more than 30% year-on-year, driven by infrastructure investment, headcount growth, and continued losses in Reality Labs. While operating income remained positive, margin compression has become the central concern shaping Meta’s valuation.
The Manus acquisition reinforces Meta’s ambition to lead the next phase of AI adoption. The challenge now is execution—proving that bold investments can translate into scalable, profitable growth without further straining investor confidence.
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