Wedbush raises Meta stock price target to $920 on Muse demand

Wedbush analyst Dan Ives maintains Outperform ratings for Tesla (TSLA) and Meta (META) with $500 and $900 price targets. Tesla reported Q3 revenue of $28.05B, beating EPS estimates, while Meta saw 26% revenue growth. Ives sees long-term potential in Tesla's autonomous driving and a possible merger with SpaceX, and highlights Meta's AI-powered advertising tools.

Wall Street set to open lower on Thursday due to AI-related concerns, with Tesla, Meta, and other tech stocks declining. Tesla fell 3.5% after cutting its capital expenditure forecast, while Meta slipped 2.4% due to AI expansion costs. SpaceX and Super Micro also dropped despite strong earnings. Oil prices rebounded, adding to market jitters. S&P 500 earnings growth forecast raised to 32.3%.

Meta Platforms (META) shares fell 3% despite beating Q3 2026 revenue estimates ($64.6B) and raising guidance, due to increased AI spending. Alphabet (GOOGL) and Microsoft (MSFT) also declined. Meta's capital spending outlook rose to $135B-$145B, and operating margin contracted to 20%. CEO Mark Zuckerberg highlighted AI-driven growth and Muse's early adoption.

Meta (META) introduced a new class of nonvoting shares, creating an overhang on its stock. Analysts suggest issuing the shares quickly to refocus on product momentum. The move, aimed at keeping Zuckerberg in California, will give shareholders one nonvoting Class C share per existing share, trading to begin in January 2027. Meta's Q4 revenue rose 26% to $64.6B, with EPS at $3.83 vs. estimates of $3.56. Stock fell 2% in premarket trading.

South Korea's KOSPI index dropped 3.5% to 5,533.77 on October 22, as the Bank of Korea held interest rates steady but left the door open for future hikes. Samsung Electronics and SK Hynix, major semiconductor stocks, fell 4.03% and 5.80% respectively, amid concerns over AI profitability and Meta's financial results. The decline was also influenced by geopolitical risks and reduced corporate buying.

Meta Platforms (META) announced a new class of nonvoting stock to fund AI expansion, following CEO Mark Zuckerberg's negotiations with the board over a proposed California wealth tax. The new Class C shares will be issued to existing shareholders, with Zuckerberg able to sell up to 20% immediately. Meta's stock dipped 3% despite an earnings beat, as the company narrowed its capex outlook amid AI spending surge.