Meta's Quest 3 Launch, AI Agents And More: Get Ready For Connect Developer Conference

Meta Platforms, Inc. (NASDAQ:META) is set to unveil groundbreaking advancements at its annual Connect developer conference, scheduled for Sept. 27-28.

Among the anticipated highlights is the official launch of Quest 3, a virtual reality headset promising to redefine the VR experience.

Beyond Quest 3, attendees and enthusiasts are eager for updates on Horizon Worlds and the tantalizing possibility of new AR glasses.

AI Agents And Investment Prospects

Bank of America is adding fuel to the excitement, speculating that Meta could introduce early versions of AI agents designed for consumers and businesses. These agents may include chatbots with personas, content creation tools, advertiser resources, and customer service solutions.

While initially more relevant for Facebook, Instagram, and messaging services, these AI agents are expected to play a pivotal role in driving engagement, interaction with businesses, and ad revenues across the Metaverse.

Bank of America’s equity analyst Justin Post outlines four key areas that investors will closely scrutinize during the event:

1. The justification for Meta’s unprecedented Metaverse platform investment, estimated at $18.4 billion in total expenses for 2023.
   
2. The presence of developer momentum and compelling Metaverse content that could alter the Metaverse narrative.
   
3. Meta’s AI innovation that holds the potential to boost engagement and enhance ad targeting across its platforms.
   
4. Clues about prospective investment spending plans for 2024, a vital element for investor confidence.

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Despite expressing caution regarding Metaverse spending sentiment, analysts at Bank of America say that Meta appears well-positioned, armed with substantial capital expenditure (capex) and significant AI expertise, including a proprietary AI supercomputer and Llama 2 LLM.

The investment bank holds a Buy rating on Meta’s stock and a 1-year price target of $375, or 25% higher than current market prices.

Meta’s Remarkable 2023 Performance, Analyst Projections

Meta’s stock has been skyrocketing in 2023, posting a 140% increase this year. This gain secures its position as the second-best performer among S&P 500 and Nasdaq 100 stocks, trailing only behind Nvidia Corp. (NASDAQ:NVDA), which boasts a 190% rise.

Wall Street analysts currently maintain a 1-year average price target of $369 per share for Meta, representing a 24% increase from current levels. Out of 58 analysts covering the stock, 45 rate it a Strong Buy, underlining a strong bullish sentiment among experts.

Meta’s forward price-to-earnings ratio stands at 18x, notably below its 5-year average of 22x and its 10-year average of 28x.

Chart: Meta And NVIDIA Have Outperformed In The Tech-Giant Race This Year

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