Guggenheim Adjusts Meta Platforms Price Target to $850 From $700

Guggenheim raised its price target on Meta Platforms (META) to $850 from $700, citing progress in Muse AI adoption and higher 2027 estimates. Muse reached 1.3 million daily active users in five weeks, though it remains a small fraction of Meta's total users. The analyst expects Muse to generate revenue through business payments, aligning with Meta's advertising model. Guggenheim also increased its 2027 capital expenditure forecast to $225 billion and projects 25% Q3 core advertising growth.

Meta Platforms CEO Mark Zuckerberg stated the company is prepared to invest up to $200 billion in AI development, even before knowing if the models will succeed. Meta launched its first frontier-class model, Muse Wonder, aiming to compete with leading AI models. The company's infrastructure has expanded significantly, with capital spending guided at up to $145 billion this year. Meta's shares fluctuated in September due to AI-related market reactions.

Goldman Sachs raised its price target for Meta Platforms (META) to $860 from $725, citing valuation and earnings revisions. The stock closed at $762.50, up 2.63%.

Meta released two AI models, Muse Wonder and Muse Wonder Full, at 2 a.m. Muse Wonder Full scored 56 on the Artificial Analysis Intelligence Index, tying with Claude Sonnet 5.5. Muse Wonder Full excels in long coding tasks, scoring 57.5% on SWE-Marathon, outperforming competitors. Muse Wonder Full is available only through a Muse Code subscription, while Muse Wonder uses pay-per-use pricing. Early users faced quota errors, with no timeline for fixes provided.

Meta CEO Mark Zuckerberg revealed the company committed to spending $100B-$200B on AI infrastructure last year. Meta unveiled a new AI model and launched the AI assistant Muse, but acknowledged uncertainty about consumer response. Meta is increasing AI spending amid competition, with financial results due October 21. Shares fell 8% last quarter but are up 12% YTD.

Meta is contesting a New Mexico request for a $35B-$40B fine, calling it unconstitutionally excessive. The state seeks penalties for alleged consumer-protection violations related to Facebook's privacy practices. Meta proposes a fine between $154M and $1.54B, arguing the state failed to prove harm. A jury previously found Meta made 26 misleading statements, totaling 43M violations of state law.