TLDR
- Meta stock fell in premarket trading Monday, risking back-to-back losses for the first time since mid-August.
- Shares are still up 32% for September despite Friday’s 3% drop and Monday’s premarket slide.
- The pullback comes as AI stocks face pressure after OpenAI paused training on its newest models.
- Analysts remain mostly bullish, with price targets ranging from $855 to $950 based on Muse’s early momentum.
- Jefferies says Muse is being trusted with increasingly complex tasks, calling it a surprise hit product.
Meta stock slipped again Monday, down about 3% in premarket trading. That follows a 3% drop on Friday, putting the stock at risk of back-to-back losses for the first time since mid-August.
Even with the recent stumble, September has been kind to Meta. The stock is up 32% for the month through Friday’s close.
Much of that rally traces back to Muse, Meta’s personal AI agent. It launched on September 8 and quickly climbed to the top of app store charts.
But the initial pop seems to be fading. That raises the question of what happens next for the stock.
What’s Driving the Pullback
Part of the pressure is coming from outside Meta entirely. OpenAI said it has paused training on its latest models, only planning to resume once additional safeguards are in place.
That news has weighed on AI-related stocks broadly, and Meta hasn’t been immune. BNP Paribas analyst Nick Jones says the bigger story for investors now is competition.
“From here, we believe investors need to pay attention to likely launches of competing consumer AI agents, particularly from larger platforms like Google and OpenAI,” Jones wrote in a note late Friday.
Jones still rates the stock positively, with a price target of $855. That implies 14% upside from Friday’s close.
Where Muse Goes From Here
Muse currently makes money through small transaction fees. Jones says long-term monetization is still an open question for investors.
He does see potential in advertising eventually becoming part of the mix, even though Meta has avoided ads on Muse so far.
Jefferies is more upbeat. The firm reiterated a Buy rating and an $875 price target following its AI Summit, calling Muse a surprise hit product.
Meta shares currently trade at $751.66, just 1% below their 52-week high of $779.82.
Jefferies said Muse usage keeps climbing as the tool takes on more complicated tasks. The firm said it’s been surprised by how much responsibility users have handed Muse in just a couple weeks, everything from paying parking tickets to building detailed trackers.
At 19 times fiscal 2028 estimated earnings, Jefferies sees room for the stock to keep climbing. Competition from Alphabet and Apple is coming, the firm noted, but it isn’t changing its outlook yet.
Other analysts have piled on with their own price hikes. Canaccord raised its target to $950, pointing to Muse’s 2.5 million downloads in its first two weeks.
TD Cowen bumped its target to $865, citing a clearer AI monetization path after Meta’s Connect event. That event included new VR and AI Audio Glasses announcements.
Piper Sandler raised its target to $875 as well, following CEO Mark Zuckerberg’s comments on AI tools at Connect 2026. Not everyone is fully on board, though.
Oppenheimer kept a Perform rating, flagging concerns about Muse’s monetization and 2027 operating expenses. Muse is still adding roughly 340,000 U.S. downloads per day, the firm noted.
BMO Capital also stayed cautious with a Market Perform rating and a $580 price target. BMO pointed to Meta’s new VR glasses, priced at $1,299 and set to launch in spring 2027.
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