Meta Platforms (META) is facing a rough patch, with shares down 16% year-to-date and bulls growing frustrated. But one analyst sees a game-changing opportunity that could reignite growth: AI-powered business agents on WhatsApp and Messenger.
Piper Sandler analyst Thomas Champion reiterated his overweight rating on Meta, calling the company a top large-cap pick. He believes Meta's new Business Agent product—a customer support bot announced earlier this month—could unlock "the next leg of revenue growth."
The tool allows businesses to automate customer interactions using AI, and Champion sees a massive total addressable market of over $75 billion, spanning contact-center-as-a-service, customer engagement marketing, and marketing automation software.
Meta has already seen success with paid messaging on WhatsApp, generating $2.6 billion in "other" revenue in 2025, up from $800 million in 2022. But the new agent could extend beyond emerging markets and across Meta's entire app ecosystem.
While agent revenue may not scale until 2027, Champion argues that Meta's stock is pricing in minimal benefit, trading at just 16 times estimated 2027 earnings. He set a price target of 800, implying significant upside from current levels around 542.
The AI Spending Debate
Meta stock has fallen over 20% since its Q1 earnings report, which revealed plans to spend $135 billion in capital expenditures this year on AI data centers. Investors are skeptical about the timeline for returns on this massive investment.
However, Champion's analysis suggests that the Business Agent could be the catalyst that turns AI spending into tangible revenue, potentially easing bearish concerns.
This article is for informational purposes only and does not constitute investment advice.
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