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Mark Zuckerberg presenting at Meta Connect 2026 in Menlo Park, California
Photo: TechCrunch

Meta Stock Falls 3.3% on Profit-Taking After Muse AI Surge

BigGo Finance2 min read6 sources

Why is Meta stock down today?

Meta (META) stock fell 3.3% on Monday, pulling back to $751.66 after a 36% September surge, as profit-taking hit the stock on the first trading day since analysts raised price targets on Friday.

Key numbers

META price (Sep 28)$751.66-3.33% on day
September 2026 gain+36%best monthly gain in years
Muse downloads (3 weeks)3.4Msurpassed ChatGPT's launch pace
TD Cowen price target$865raised from $750
Canaccord price target$950raised from $930
TD Cowen Muse rev. est. (2031)$27Bfrom $55M in 2026

What happened

Meta (META) stock fell 3.3% on Monday, pulling back to $751.66 after a 36% September surge, as profit-taking hit the stock on the first trading day since analysts raised price targets on Friday. Meta launched its Muse personal AI agent on September 8, and within three weeks the app topped Apple's App Store and racked up more than 3 million downloads — outpacing ChatGPT's early adoption rate. TD Cowen raised its target to $865, projecting Muse revenue growing from $55 million in 2026 to $27 billion by 2031, while Canaccord lifted its target to $950 from $930. A New Mexico jury found on September 26 that Meta misled Facebook users over data safety, adding a fresh legal headwind into Monday's session.

Why it matters

Meta stock's first meaningful Monday pullback since the Muse AI agent launched tests whether a 36% September surge had real institutional backing or was purely momentum-driven. Meta spent over $130 billion on AI infrastructure in 2026 while profits came under pressure — costs surged 55% year over year in Q2 — making Muse a crucial proof point for the company's entire AI strategy. If today's dip stays shallow, it signals that the analysts who just raised targets to $865 and $950 are right to call Muse a durable new revenue line; a deeper slide would suggest the September rally was mostly hype.

Who this affects

Marketmixed
Medium impact
Investors split: profit-takers sell, dip-buyers watch $740 support.
Companymixed
High impact
First real test of META's Muse-driven valuation rerating.
Competitorsneutral
Medium impact
Alphabet and Snap watch for any Muse adoption slowdown signals.
Industrybullish
Medium impact
AI agent transaction-fee model faces its first commercial stress test.

Meta vs Alphabet, Snap

MetaMETA:NASDAQ$1.9T-3.3%+36%23x
AlphabetGOOGL:NASDAQ$4.1T——16x
SnapSNAP:NYSE$9.3B——N/M

As of 2026-09-28

How we got here

  1. Meta launches Muse AI agent; app reaches No. 1 on Apple App Store within days.

  2. META surges 11.3% in one session, adding $192 billion in market cap.

  3. Meta Connect 2026 unveils Muse hardware and transaction-fee monetization roadmap.

  4. TD Cowen raises target to $865 and Canaccord to $950; META closes at $777.59.

  5. META falls 3.3% to $751.66 — first meaningful Monday selloff since Muse launch.

What to watch

  • Whether META holds above $740 support level through the week.2026-10-03
  • Q3 2026 earnings: first quarter to show any Muse transaction or subscription revenue.Q4 2026
  • Google and Amazon competitive responses to Muse's retail commerce integrations.Q4 2026

Educational content only. Not investment advice.

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