- Wells Fargo raised Meta's price target to $1,000 from $796 and kept an Overweight rating, pointing to the AI-powered Muse product cycle.
- Wells Fargo analyst Ken Gawrelski sees FY27 as trough EPS of the new product cycle, with Muse potentially a much larger AI-driven cycle than Reels.
- Meta shares gained nearly 20% since Muse launched Sept. 8, while the S&P 500 rose 1.5%; Muse hit the top spot for free apps on Apple's App Store.
- Wells Fargo expects Meta Q3 revenue at the high end of guidance and strong Q4 revenue guidance, with FY26 and FY27 opex rising on a $10 billion settlement charge.
Quotes
“Expect enthusiastic discussion of AI agent opportunities”
“as an accelerating growth story with emerging upside AI options in messaging, ad tools and new consumer applications”