$Meta Platforms, Inc.(META)$ $Meta Platforms, Inc.(META)$  is still going strong despite last night market fall. Why META is going strong lately?

1. Muse AI is changing the investment story

Meta's Muse AI assistant launched on September 8 and attracted significant investor attention. Its reported five million downloads in the first 22 days helped investors see a possible new source of revenue beyond advertising.

2. Investors are becoming more confident in its AI strategy

On October 12, Meta unveiled its Muse Wonder AI models, which it says compete with leading AI systems. The launch strengthens the investment narrative, although commercial success remains to be demonstrated.

3. Its existing advertising business remains powerful

Meta's Q2 2026 revenue grew 28% year over year to US$60.8 billion. Ad impressions rose 14%, while the average price per ad rose 12%. These are strong underlying business indicators.

Is it too late to buy?

Meta rose approximately 25% in September, and it gained a further 4.1% on October 12. The momentum is real, but its valuation is no longer as attractive as it was before the rally.

My assessment:

Long-term holding: The combination of advertising cash flow and AI opportunities remains compelling.

Buying now: I'd be more selective rather than chase a sharp rally immediately before earnings.

Main risk: AI spending is enormous. Meta's Q2 operating income fell 8% despite 28% revenue growth, illustrating the pressure that higher costs can put on profits.