Meta is set to release its consumer AI agent, Hatch, in late August or early September, with a premium subscription tier that could cost as much as $199.99 per month. The company has also been preparing a WhatsApp platform for third-party AI agents, with testing possibly starting as soon as this week.
Hatch's rollout plan
Hatch has been trained to work across several popular apps, including DoorDash, Etsy, Reddit, Yelp, and Outlook. A tiered subscription model is under consideration, though the exact pricing structure hasn't been confirmed. The $199.99 figure for premium access would place it well above typical consumer AI subscriptions.
The timing matters. Meta is also shipping updates to its Muse family of coding agents. Muse Spark arrived in April, version 1.1 in July, and version 1.2 alongside the Muse Code agent in August. A new model, Watermelon, is targeted for October, though it's still unclear whether it will join the Muse lineup.
Heavy spending and a shrinking cash cushion
Meta raised its 2026 capital expenditure floor to $130 billion, up from $125 billion, with a ceiling of $145 billion. In the second quarter, capital expenditures hit $31.08 billion, while operating cash flow came in at $31.86 billion.
Free cash flow tells a different story. It dropped to $784 million in Q2, down from $8.55 billion a year earlier. That's a steep decline, and it helps explain why the stock has struggled. META shares closed at $559.02, down more than 15% this year, with a market cap of nearly $1.42 trillion.
Revenue remains solid overall. The company reported $60.8 billion in Q2 revenue, with advertising contributing $59.4 billion—over 97% of the total. Reality Labs brought in $431 million, while other revenue reached $1.01 billion.
Regulatory pressure and analyst splits
A youth-safety trial in Oakland has added pressure on Meta. That case is drawing comparisons to tobacco litigation from some analysts. Mizuho has struck a cautious tone, while Bank of America keeps a Buy rating with an $810 price target.
The regulatory scrutiny isn't just about Hatch—it's part of a broader push on how Meta handles younger users across its platforms. The Oakland trial could set a precedent, though it's still in its early stages.
Meta is estimated to report Q3 earnings on October 28. That will be the first look at how the new spending plan is hitting the bottom line, and whether Hatch has gained any traction. The big unresolved question is Watermelon—whether that model will actually ship under the Muse brand or take its own path. That answer might come sooner than the earnings call.
