Goldman Sachs Adjusts Price Target on Meta Platforms to $860 From $725

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.

Meta Platforms (META) launched its Muse Wonder AI model family, featuring Active Memory and Active Focus. CEO Mark Zuckerberg called it a turning point, noting faster future releases. The models are accessible via Meta's API and paid subscription. The company's Muse personal AI agent app, launched last month, has seen 5 million downloads. Meta invested $14 billion in AI overhaul, including a deal with Scale AI.

Alibaba (BABA) launched its Qwen Glasses N1 series, priced at $450, competing with Meta's (META) smart glasses. The Pro version includes eye-tracking and costs $525. Both companies aim to integrate AI assistants into wearables, with Alibaba leveraging its commerce ecosystem. BABA shares fell 1% in premarket trading.

Meta Platforms (META) shares rose 3.2% to $766.60 after launching Muse Wonder AI models. The company claims the models offer advanced capabilities, but no specific financial data was provided. The stock is 11.41% below its GF Value estimate of $865.38, raising questions about future profitability and customer retention.