Meta Platforms Is Up Nearly 25% in September. Does It Have Room to Rise Further?
2026-09-30 11:22
•Keithen Drury •The Motley Fool
••••••• • Axe Cap view
Meta’s 25% Rally: Is It Time to Back the AI Bet?
Meta surged on its AI launch but South African investors should weigh the risks before assuming more upside.
Meta Platforms’ nearly 25% jump in September, powered by its new Muse AI agent, has stirred excitement. Its valuation moved from a cheap 18x forward earnings to a more respectable 23x, in line with global tech peers. For South African investors, the bigger picture involves the rand and local tech exposure. Meta itself isn’t JSE-listed, but its performance influences global tech sentiment, which filters down to stocks like Naspers and Prosus. Both companies hold significant stakes in global tech assets and typically move alongside shifts in innovative tech valuations. The Muse product is free now but expects paid subscriptions later—success depends on adoption, and we won’t know until Q3 earnings release in late October. If Muse gains traction, it might pull global tech and JSE-related counters higher. But if growth stalls, the recent pop could fade quickly. Watch the USD/ZAR as strong dollar risks could offset any tech gains. this is just our opinion and not financial advice
Watch for Q3 earnings signals before adding to Naspers or Prosus; be ready to trim if Muse fails to show clear monetization progress. Keep USD/ZAR exposure moderate as currency volatility could counterbalance gains.
- Naspers
- Prosus
- USD/ZAR
- Muse AI adoption disappoints
- USD strength weighs on rand and JSE tech stocks
6/10
Meta Platforms surged nearly 25% in September following the launch of Muse, a personal AI agent product. The stock moved from a cheap 18x forward earnings valuation to 23x, which is more typical for companies of its caliber. While Muse is free to use, Meta plans to monetize it through paid subscriptions with usage limits. The key question for investors is whether Muse adoption will justify the stock's gains, with Q3 earnings in late October expected to provide crucial insights.
Our take is based on reporting first published by The Motley Fool.