- Meta Platforms rose about 7% to $712.56 on Monday, several times the pace of the Technology Select Sector SPDR ETF (+1.72%) and Invesco QQQ (+1.88%), locating the driver inside Meta rather than in a broad AI sector repricing.
- Wells Fargo lifted its META price target to $796 from $640 with an Overweight rating, citing recent model launches and early traction for the Muse assistant; KeyBanc kept Overweight and a $780 target.
- Meta Connect is the next test: investors expect Muse usage metrics, automated business tools and next-generation Ray-Ban smart glasses, with Q3 earnings to follow on October 28.
- Risks sit alongside the rally: a legal charge of approximately $10 billion this quarter tied to a framework settlement of federal teen-safety litigation, and FY26 capital spending guided at $125 billion to $145 billion for data centers, semiconductors and networking.
Quotes
“Shares are at $712.56, up 7% in Monday morning trading, several times the pace of the broader technology backdrop.”
“Meta shares jumped above $700 as Wells Fargo lifted its price target and the launch of Muse strengthened optimism ahead of Meta Connect, although heavy spending and rising legal costs remain significant risks.”
“Meta has indicated that its legal charge could reach approximately $10 billion this quarter.”