Meta Jumps 6.25 Percent as Muse Wonder Models Win Analyst Backing

Updated 01:49 UTC

Meta Platforms shares settled at 762.50 dollars in Tuesday trading, up 2.6 percent from Monday's close of 742.96 dollars and up 6.1 percent from 718.67 dollars, the close before the rally began. Barron's reported the 762.50 dollar price and said Truist analyst Youssef Squali raised his price target to 1,000 dollars from 763 dollars. Investor's Business Daily also reported Meta rallying again on Tuesday after the Muse Wonder launch drew bullish views from Wall Street. Barron's said Squali expects third quarter results at the higher end of guidance and forecasts Muse could add 28.5 billion dollars in revenue by 2030, while projecting Meta capital spending of 190 billion dollars in 2027, up 32 percent. The close holds most of Monday's gain ahead of results on October 21.

Updated 19:49 UTC

Meta Platforms shares climbed further to 763.59 dollars on Tuesday, October 13, up 6.25 percent from 718.67 dollars. Barron's reported shares up 2.9 percent to 764.72 dollars in Tuesday trading, a level close to the latest price, and said Truist analyst Youssef Squali raised his price target to 1,000 dollars from 763 dollars. Investor's Business Daily also reported Meta rallying again on Tuesday after the Muse Wonder launch drew bullish views from Wall Street. Pivotal Research raised its target to 930 dollars from 790 dollars and kept a buy rating, saying returns on Meta's AI spending are coming into focus, Stocktwits reported, citing TheFly. The move extends the rally first reported earlier today.

Meta Platforms shares climbed to 756.82 dollars on Tuesday, October 13, up 5.31 percent from 718.67 dollars. The move extended a rally that started on Monday, when the stock closed at 742.96 dollars, up 3.38 percent for the day.

The launch behind the move

Meta launched Muse Wonder and Muse Wonder Full on Monday, October 12. The company called them its most capable AI models yet. Reuters reported that shares rose about 4 percent in afternoon trading on Monday after the launch. The Wall Street Journal also recorded a gain of 3.4 percent to 742.96 dollars that day.

Meta said Muse Wonder will soon power its Muse personal AI agent, first for subscribers. The larger Muse Wonder Full model is available to subscribers of Muse Code, its coding tool. Reuters said the launch follows a year in which chief executive Mark Zuckerberg pledged billions of dollars and recruited researchers to catch up in the AI race.

Analysts raise targets

Analysts moved quickly after the launch. Bank of America analyst Justin Post set a price target of 810 dollars. Wells Fargo analyst Ken Gawrelski set a target of 1,000 dollars. Cantor Fitzgerald analyst Deepak Mathivanan kept a buy rating and set a target of 840 dollars, Finbold reported.

The updates continued on Tuesday. KeyBanc analyst Justin Patterson confirmed a buy rating. Evercore ISI analyst Mark Mahaney also kept a buy rating and set an 860 dollar target, citing the new Muse model, Finbold reported. Barron's reported that Truist analyst Youssef Squali raised his target to 1,000 dollars from 763 dollars on Tuesday.

Why it matters

Investors have questioned how Meta will pay for its heavy AI spending. Barron's reported that the company expects capital spending of 130 billion to 145 billion dollars in 2026 alone. A model that users and developers pay for gives Meta a path to turn that spending into subscription and API revenue, beyond advertising.

The test still lies ahead. Paid plans and developer pricing do not prove demand by themselves. Meta will report third quarter results on October 21, TIKR reported after the Monday close. The numbers will show whether the Muse agent and the new models are starting to turn spending into revenue.