Meta Platforms (NASDAQ: META) shares climbed about 2.6% on Thursday, reversing earlier premarket losses, as Wall Street responded positively to the company's Meta Connect event. The gain came even as the broader market struggled, with the Nasdaq falling 0.7% and the S&P 500 slipping 0.4% amid rising Treasury yields and higher oil prices.
The 30-year Treasury yield touched 5.446%, its highest level since June 2004, while the 10-year note yield surged to 5.15%, approaching levels last seen in July 2007. International Brent crude futures rose 3% to $106 a barrel, and West Texas Intermediate gained 3% to roughly $95. These pressures are raising concerns about consumer spending and monetary policy, creating a challenging backdrop for high-growth technology stocks.
Meta shares have gained about 22% since the AI assistant Muse emerged on September 8, setting high expectations for rapid adoption heading into Connect. The event showcased a broader ecosystem around Muse, rather than treating it solely as a chatbot.
New hardware and retail partnerships
Meta unveiled Meta VR Glasses, a compact device weighing about as much as a deck of playing cards, with the battery and processor moved into a separate puck. Priced at $1,299 and scheduled for spring 2027 launch, the glasses aim to compete with bulkier devices like Apple's Vision Pro. Meta also introduced Meta Charm, a small handheld device with a 2-inch touchscreen and 5G connectivity, shipping during the December holiday period at an undisclosed price.
Muse will become the primary interface for Meta's smart glasses, enabling voice-activated shopping and appointments. The company announced partnerships with Walmart, Best Buy, Sephora, Wayfair, Dick's Sporting Goods, and Gap, though Amazon is not currently allowing Muse access. These partnerships could open a new monetization model beyond advertising, with JPMorgan analysts led by Doug Anmuth suggesting Meta could eventually earn transaction commissions.
Analyst reactions and price targets
JPMorgan raised its price target on Meta to $920 from $820, stating that Muse has the potential to become "the most widely used consumer AI application since ChatGPT." Morgan Stanley maintained an Overweight rating and a $775 price target, noting that the new AR glasses represent a notable improvement in size and capabilities, though they remain skeptical of Meta's AR/VR efforts. Morgan Stanley expects transaction commissions to remain low initially as Meta focuses on ecosystem expansion, with details like data-sharing and merchant-of-record status still unclear.
Citizens raised its price target to $885 from $770, citing Meta's AI-focused hardware ecosystem and early Muse momentum as potential sources of new monetization. The positive analyst commentary underscores growing confidence in Meta's AI strategy, even as macroeconomic headwinds persist.
This article is for informational purposes only and does not constitute financial advice.
