TLDR
- Wells Fargo increased its Meta price target from $796 to $1,000 while maintaining an Overweight rating.
- Analysts forecast 2027 will mark an earnings low point as infrastructure investments surge ahead of projected 2028 revenue acceleration.
- Citi maintained its Buy rating after Meta’s Muse assistant achieved 6.6 million downloads and held the #1 app position for 16 consecutive days.
- Shares advanced 0.2% to $743.01, marking a nearly 21% increase since Muse’s September 8 debut.
- Central Pacific Bank Trust Division expanded its META position by 65% in the most recent quarter, bringing holdings to approximately $5.2 million.
Shares of Meta Platforms advanced 0.2% to $743.01 during Tuesday’s session, extending gains above 20% since early September. The uptick followed fresh analyst commentary focused on the social media giant’s artificial intelligence strategy.
Wells Fargo equity analyst Ken Gawrelski lifted his price objective to $1,000 from a prior $796 target. His Overweight recommendation remained unchanged.
The upgrade, however, came with a cautionary message. Gawrelski anticipates 2027 will represent a low point for Meta’s profitability.
The firm projects minimal revenue contribution from Muse, the company’s new AI assistant, during that timeframe. At the same time, infrastructure expenditures continue their upward trajectory.
Gawrelski also flagged a $5 billion impact stemming from discontinued capacity resales. Meta is reallocating that computing power to support its own artificial intelligence initiatives rather than leasing it to external customers.
The analyst urged shareholders to focus beyond the near-term headwinds. His thesis centers on 2028 as the inflection point when AI-driven revenue begins layering meaningfully onto Meta’s core advertising operations.
In an interesting twist, Gawrelski believes current Wall Street projections for 2027 remain overly optimistic. He anticipates downward revisions once the market fully absorbs the extended monetization timeline.
Wells Fargo drew parallels between the Muse launch and Meta’s 2022 transition to Reels. That earlier product shift redirected user engagement from traditional posts to short-form video content, ultimately delivering positive results.
Citi Highlights Strong Early Traction
Citi analyst Ronald Josey took a more immediately optimistic stance in his Tuesday note. He reaffirmed both his Buy rating and $800 price objective.
Josey emphasized that Muse has accumulated more than 6.6 million downloads since launch. The application has maintained its position as the top downloaded app for 16 consecutive days.
Citi’s model projects Muse could eventually drive over $27 billion in annual revenue once fully scaled. That forecast represents a significant figure for market participants tracking the stock.
Market reaction to the positive analyst coverage proved muted. Share price movement remained minimal despite the upgraded outlooks.
Institutional Investors Continue Accumulation
Beyond Wall Street research, institutional stakeholders have been actively increasing their exposure. Central Pacific Bank Trust Division expanded its META holdings by 65% during the previous quarter.
The institution acquired an additional 2,817 shares, pushing its total position to 7,169 shares valued at roughly $5.2 million. Other smaller investment firms, including Watchman Group and Penney Financial, similarly expanded their allocations.
Hedge funds and institutional investors collectively control nearly 80% of Meta’s outstanding shares. This represents substantial concentration among professional asset managers.
According to MarketBeat tracking data, Meta’s consensus analyst price target stands at $787.86. Price objectives span from a low of $700 to a high of $900 across covering analysts.
Corporate insiders have not been accumulating shares recently. COO Javier Olivan and CEO Mark Zuckerberg both executed share sales in September through pre-established Rule 10b5-1 trading arrangements.
Insider dispositions have totaled nearly $99.9 million during the past ninety days. Company insiders maintain ownership of approximately 13.5% of outstanding stock.
Meta’s most recent quarterly results, released July 29, reported revenue of $60.80 billion. The figure surpassed analyst expectations of $60.22 billion and represented 28% year-over-year expansion.
The company posted earnings of $6.18 per share, falling short of the $7.19 consensus estimate. Meta distributes a quarterly dividend of $0.525 per share, translating to approximately 0.3% annualized yield.
Tuesday’s opening price of $741.90 positioned shares near their 12-month peak of $779.82.
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