Why Is Meta Platforms (META) Stock Rising Today? Meta Acquires AI Startup Manus

Meta Platforms, Inc. (META) stock is trading at $665.93, up $7.24 (+1.10%) as of 9:41 AM EST on December 30, 2025. The surge follows the company’s announcement that it will acquire Manus, a Singapore-based artificial intelligence startup with Chinese roots, in a deal valued at more than $2 billion. This acquisition marks Meta’s latest strategic move to accelerate AI integration across its platforms and build a subscription-based business around its massive AI investments.

The deal, which closed in approximately 10 days, represents a rare U.S. acquisition of a Chinese-origin tech company and underscores CEO Mark Zuckerberg’s commitment to making AI the company’s top priority.

$2B+ Manus Deal Expands Meta’s AI Capabilities

Meta announced it will acquire Manus, formerly hailed as “China’s next DeepSeek,” in a deal valued between $2 billion and $3 billion according to sources with direct knowledge. The Singapore-based startup gained prominence earlier this year after releasing what it claimed was the world’s first general AI agent capable of making decisions and executing tasks autonomously with significantly less prompting than traditional AI chatbots.

Manus had achieved an annual revenue run rate of $125 million from selling its AI agent to businesses via subscriptions, potentially providing Meta with more immediate returns on its AI spending.

The acquisition brings approximately 100 Manus staff members to Meta, including co-founder and CEO Xiao Hong, who will report to Meta’s Chief Operating Officer Javier Olivan. Meta intends to continue operating and selling the Manus service while integrating it into consumer and business products, including Meta AI.

All existing Chinese investors, including Tencent Holdings, ZhenFund, and HSG (formerly Sequoia Capital China), have been bought out in the takeover. Meta emphasized that there will be no continuing Chinese ownership interests following the transaction, and Manus will discontinue all services and operations in China.

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META Shares Trade Higher as Investors Assess AI Deal

Meta’s stock has shown strong performance with a market capitalization of $1.68 trillion as of the market open. Over the past year, META has delivered returns of +13.17%, though it has slightly underperformed the S&P 500’s +16.85% gain during the same period. The company’s year-to-date return stands at +14.28%.

With a forward P/E ratio of 21.98 and a profit margin of 30.89%, Meta demonstrates solid financial fundamentals. Analysts maintain a bullish outlook with an average price target of $837.15, suggesting significant upside potential from current levels.

The Manus acquisition aligns with Zuckerberg’s pledge to spend $600 billion on U.S. infrastructure projects over the next three years, many expected to be AI-related. The company has been aggressively hiring researchers to develop a new state-of-the-art AI model planned for debut in spring 2026.

While some investors have expressed skepticism about whether heavy AI spending will result in meaningful revenue soon, the Manus deal provides a concrete path to monetization through its existing subscription business and enterprise customers. The deal faces potential regulatory scrutiny given Manus’s Chinese origins, though the company relocated to Singapore to reduce risks from Sino-U.S. geopolitical tensions.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.