Meta Stock Soars 11% as Wells Fargo Raises Target to $796, Muse AI Tops App Store

Meta (META) stock rocketed 11% to $741.25 on Monday after Wells Fargo analyst Ken Gawrelski raised his price target from $640 to $796. The upgrade reflects strong early adoption of Meta’s Muse AI personal agent, which launched September 8 and hit the top spot on Apple’s App Store. Muse recorded 730,000 downloads over five days and 448,000 daily active users by September 18, signaling the company’s AI investments are finally paying off after a difficult 2025.

Wells Fargo’s $156 price target boost signals confidence in AI turnaround

Ken Gawrelski kept an Overweight rating and raised his price target to $796 from $640, citing Meta’s recent successful AI model launches and early Muse traction. Gawrelski said the launches give Meta “a story to tell” heading into this week’s Meta Connect conference on September 23 and 24. The $156 increase represents a 24% upside from Monday’s close, reflecting analyst confidence that the company’s AI strategy is working.

This marks a sharp turnaround from 2025, when Meta faced AI model delays and investor questions about billions spent on infrastructure buildout. CEO Mark Zuckerberg rebuilt the AI lab by hiring Alexandr Wang, Scale.AI’s co-founder and CEO, as Meta’s chief AI officer. The restructuring has produced several models within the Muse AI family, including Muse Spark, which powers the new personal agent.

Muse AI downloads surge as options traders pile into bullish bets

Meta’s Muse personal agent can send email, book travel, fill out forms, and continue working after the app closes. It launched September 8 and hit 264,000 U.S. downloads on September 19 alone, according to SensorTower data cited by Wells Fargo. The app is available on iOS, Android, muse.ai, and WhatsApp, with glasses support coming soon.

Options trading volume surged to 4.5 times the 30-day average on Monday, with $3.9 billion in total premium exchanged. More than twice as many calls were bought versus puts, and seven of the top 10 trades were bullish or neutral. The most active contracts were zero-day-to-expiry options with strikes from $720 to $745, with heavy volume also in $775 and $800 strikes expiring mid-October.

Stock momentum extends three-month rally as technical indicators flash overbought signals

Meta stock has jumped 30% over the past three months, with only Microsoft outpacing it at 35%. Over the past 12 months, however, Meta fell roughly 5% while Amazon rose 38% and Google climbed 11%. Monday’s 11% surge pushed the stock to within 7% of its all-time high set in August 2025.

Meyka grades Meta a B+ with a 12-month forecast of $765.49, suggesting 3.3% upside from Monday’s close. The RSI stands at 78.09, indicating overbought conditions, while the ADX at 30.52 signals a strong trend. Analyst consensus is a Buy with 19 Buy ratings, 9 Holds, and 1 Strong Buy, but no Sell ratings. The stock’s PE ratio of 27.92 sits above the 12-month average of 23.5, reflecting elevated valuation expectations tied to AI growth.

Meta Connect keynote Wednesday could drive further gains or profit-taking

Zuckerberg will deliver a keynote at Meta Connect on September 23 at 7 p.m. Eastern time, outlining the company’s plans for AI and wearables devices. The conference comes as Meta’s Muse AI gains momentum, but also as Amazon has blocked Muse from accessing its site, limiting the agent’s ability to make purchases on the e-commerce giant’s platform. Investors will watch for details on Muse expansion, new AI models, and Reality Labs progress.

Final Thoughts

Meta’s 11% surge reflects real momentum in AI adoption, but the RSI at 78 warns of overbought conditions. With Meyka grading the stock B+ and forecasting $765.49, the data suggests limited upside at current levels. Wednesday’s Meta Connect keynote will be critical for justifying the rally.

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