Meta Platforms (META) saw its shares surge approximately 9% on Monday, following an upbeat assessment from Wells Fargo that lifted its price target on the social media and technology giant. The bank maintained an Overweight rating and raised its target to $796 from $640, implying roughly 19% upside from the stock's previous close.
The bullish revision comes just days before Meta's annual Meta Connect event, scheduled for September 23-24 in Menlo Park, California. The gathering is expected to spotlight the company's advancements in artificial intelligence, augmented and virtual reality, and smart glasses.
Muse takes center stage
Wells Fargo analysts anticipate that usage metrics for Muse, Meta's personal AI assistant, and its latest AI models will be key focal points at the conference. Muse, launched on September 8, is designed to perform tasks autonomously—such as sending emails, booking travel, and filling out forms—rather than merely responding to queries. The service runs on Muse Spark, which Meta describes as its most capable model for agentic work.
Muse is currently rolling out in the United States across iOS, Android, muse.ai, and WhatsApp, with support for AI glasses planned. Meta CEO Mark Zuckerberg has touted Muse as a personal agent that understands users' goals and works continuously to complete tasks on their behalf. Most functionality will remain free, while subscription plans will offer higher usage limits.
Analysts weigh revenue potential
The early traction for Muse has sparked debate over its potential financial contribution. Oppenheimer analyst Jason Helfstein estimated that Meta would need around 115 million paying subscribers at $20 per month to generate approximately $27.5 billion to $28 billion in annual AI-agent revenue. However, Helfstein expressed skepticism about reaching that scale, citing challenges around paid conversion, competition, and consumer trust.
These contrasting views underscore the market's focus on usage and monetization as Meta prepares to showcase Muse at Connect. Wells Fargo's higher price target reflects optimism that the company's AI products could expand engagement and create new revenue streams.
Connectivity infrastructure expansion
In a separate announcement on Monday, Meta unveiled Petal, described as the first subsea cable with petabit capacity to be deployed across an ocean. The cable will connect the United States and France, adding to Meta's broader investment in connectivity and AI infrastructure ahead of Meta Connect.
The company also reached its dividend ex-date on Monday, with a $0.525 per-share cash dividend scheduled for payment on September 28 to shareholders of record as of September 21.
Investors will be closely monitoring product usage and the development of Meta's latest AI models as the company expands its consumer AI offering. The announcements come just two days before the September 23 event, where Muse is expected to receive significant attention.
This article is for informational purposes only and does not constitute financial advice.
