Meta stock: Wells Fargo $1,000 target on Muse AI agent

Meta (META) shares are up nearly 20% since the Sept. 8 Muse AI agent launch, and Wells Fargo lifted its target to $1,000 from $796, implying 35% upside.

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Nasdaq META shares extended a post-launch rally on Tuesday after Wells Fargo raised its price target on Meta Platforms to $1,000 from $796. The new level is among the highest on Wall Street and sits about 35% above the Oct. 6 close of $738.88. The stock has gained nearly 20% since Meta released Muse, its consumer AI agent, on Sept. 8. That move reversed an early-2026 decline and put the shares up roughly 12% for the year. The company's market value is about $1.89 trillion.

What Is Muse and Why Are Investors Paying Attention?

Muse is a personal AI agent that carries out tasks rather than only answering questions, and its early adoption has changed how investors view Meta's AI spending. The app can make purchases, book reservations, plan trips and manage subscriptions. It launched with a free tier and paid plans at $20 and $100 a month.

Muse climbed the app-store charts after release. For much of 2025 and early 2026, the market questioned whether Meta's AI outlays would earn a return. Muse gave investors a visible consumer product and a possible new revenue stream beyond advertising. The shares reached a 52-week high of $779.82 on Sept. 24, during Meta Connect, and have since pulled back about 5% from that level.

Why Did Wells Fargo Raise Its Meta Target to $1,000?

Wells Fargo raised the target because it sees Muse as the start of a multi-year product cycle comparable to the early phase of Reels, with a potentially wider AI-driven scope. The brokerage said enthusiasm around the product cycle is warranted. This was the second increase in roughly two weeks, after an earlier move to $796 from $640 in late September.

The Street-average 12-month target across 46 analysts stands near $806, so the $1,000 figure sits well above consensus. Targets across the group range widely, from the low $500s to above $900, which reflects disagreement over how quickly Muse can be monetized against the cost of building it.

What Does the 2027 Earnings Trough Mean for Meta?

Wells Fargo expects 2027 to be the low point for Meta's earnings per share, because spending on AI infrastructure and talent will outrun new revenue for another year. The firm trimmed its 2027 EPS estimate by 2.1% to $31.18 and raised its 2028 estimate by 3.3% to $40.02.

Its forecast for 2027 operating expenses is $210 billion to $215 billion, above the Street estimate of about $202 billion. The implication is that the market is being asked to look through a year of weaker profit growth toward 2028, when AI product revenue is expected to feed through. The valuation is already demanding, at about 28 times earnings.

Q3 Test and Capital Spending

Meta's third-quarter results, due later this month, are the next checkpoint. Wells Fargo expects revenue at the high end of company guidance, near $64 billion, which would be 25% growth from a year earlier. The quarter also includes a $10 billion litigation settlement charge that will weigh on reported profit.

Capital spending is the larger question. Meta has guided to $130 billion to $145 billion in capital expenditures for 2026, about double the roughly $68.5 billion spent in 2025. Spending is widely projected to rise further in 2028. Among large-cap AI stocks, Meta is now one of the clearest tests of whether consumer-facing agents can justify that scale of investment.

Outlook

The Muse launch has moved Meta from an AI spending skeptic's target to a momentum leader, with shares up nearly 20% in a month. Wells Fargo's $1,000 target rests on a rebound in 2028, after an earnings trough in 2027. Near term, the Q3 report will show whether advertising strength, Muse engagement and capital spending guidance support the rally. The $10 billion litigation charge and rising 2027 expenses are the main constraints on earnings.