TLDR
- Meta stock was up about 0.5% premarket Wednesday near $740.
- Cantor Fitzgerald raised its price target to $860 from $680.
- The firm sees Meta’s Muse AI agent as a potential new revenue platform.
- Muse has topped U.S. app charts following its September launch.
- Privacy, competition and the cost of scaling AI remain key investor risks.
Meta (META) stock was up about 0.5% in Wednesday premarket trading near $740 after Cantor Fitzgerald raised its price target to $860 from $680. META closed Tuesday at $736.59, down 0.6%, following an 11.3% surge on Monday.
The new target represents about 17% upside from Tuesday’s closing price. Cantor kept its Overweight rating, citing the potential for personal AI agents to become a major new technology platform.
The price-target increase comes after a sharp run for META. The stock has gained roughly 34% over the past month as investor attention shifts toward the early performance of Meta’s Muse AI agent.
Cantor Sees Muse as a New AI Platform
Cantor believes Meta is well positioned for AI agents because of its model capabilities, computing infrastructure and large consumer ecosystem. The firm highlighted Muse as a platform that could eventually support a wide range of agent-based services.
Muse launched on September 8 and can perform tasks such as sending emails, shopping and arranging travel. The app has already climbed to the top of U.S. app-download rankings, helping ease some investor concerns about Meta’s ability to turn heavy AI spending into consumer products.
Reuters reported that Muse has passed 2.5 million downloads only weeks after launch. Meta is also testing a human concierge feature in which contractors can handle some phone calls made through the AI assistant.
Cantor said Muse is currently being subsidized as Meta builds adoption. The analyst believes the company has several possible routes toward a profitable freemium model, although this remains an analyst view rather than company guidance.
Meta is already testing paid AI options, while e-commerce could become another source of revenue. Shopify has integrated Shop Pay with Muse, giving the agent a clearer path toward completing purchases for users.
Investors Weigh Adoption Against AI Risks
Other Wall Street firms have also become more positive on Meta’s AI opportunity. Jefferies recently lifted its target to $875, while JPMorgan moved to an Overweight rating with an $820 target after assessing Muse’s early adoption.
Cantor’s $860 target is therefore part of a broader reassessment of Meta’s AI strategy rather than an isolated call. The supplied report also notes recent targets of $900 from KeyBanc and $810 from BofA Securities.
The enthusiasm follows strong underlying growth at Meta. Its latest reported quarterly revenue increased 28% year over year to $60.8 billion, although earnings came in below Wall Street expectations.
There are still clear risks. Amazon has blocked Muse from shopping on its platform, citing concerns around unauthorized access, privacy and security, showing that Meta may face resistance as the agent tries to interact with outside websites.
Meta also continues to spend heavily on AI infrastructure, while monetization of Muse is still at an early stage. Investors are therefore paying a higher valuation for growth that depends partly on adoption, successful commercialization and Meta managing privacy and security concerns.
For now, Cantor’s $180 target increase adds to Wall Street’s growing enthusiasm around Muse. The latest market reaction has META trading around $740 in Wednesday premarket trading after its sharp rally earlier in the week.
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