Meta Stock Surges 12.8% as Muse AI Tops App Store Despite Outage

Meta Platforms (META) surged 12.8% to $750.95 on September 23, driven by strong early adoption of its new Muse AI agent, which reached the No. 1 position on Apple’s US App Store. The rally came despite a service disruption Sunday night that knocked Facebook and Instagram offline for roughly two hours, triggering over 17,000 problem reports. Investors are betting on Muse’s potential to justify Meta’s massive AI infrastructure spending.

Why the outage didn’t derail the rally

Facebook and Instagram went down around 8:55 p.m. Eastern Time on Sunday, with Downdetector recording more than 17,000 Facebook reports and over 5,000 Instagram reports at peak disruption. Services recovered by roughly 10 p.m. ET. Meta did not publicly explain the cause. The outage is one of several this year: Facebook and Instagram experienced disruptions in July and June, with over 100,000 users affected in June. Messenger and WhatsApp saw smaller spikes in reports during the outage.

Muse AI becomes the real story

Muse, Meta’s personal AI agent launched September 8, has become the focal point for investors assessing Meta’s AI returns. The agent performs tasks like managing investment portfolios, booking travel, editing social media posts, and tracking finances without user intervention. Its rapid climb to No. 1 on the App Store signals strong consumer demand for AI agents, a market where Meta now competes directly with OpenAI and Alphabet. The outage itself is unlikely to change Meta’s investment case unless disruptions become longer or hurt engagement metrics.

Stock momentum and analyst outlook

Meta shares are up 29% in September and 12.3% year-to-date, with the stock trading at $750.95 after Monday’s 3% premarket jump. Wells Fargo raised its price target to $796, implying 6% upside from current levels. Meyka grades META a B+ with a 12-month forecast of $765.49, suggesting limited further gains. The stock trades at 27.9x forward earnings, the cheapest valuation among Magnificent Seven peers, but technical indicators show overbought conditions with RSI at 78.09 and CCI at 163.61.

What this means for investors

The data cuts both ways. Muse’s No. 1 ranking offers concrete proof that Meta’s AI spending can drive consumer engagement, a key uncertainty for investors. However, the stock’s 29% September rally and overbought technicals suggest much of the optimism is priced in. With Meyka grading the stock neutral on valuation and analyst consensus at Buy, the risk-reward tilts toward caution near current levels, especially if Muse adoption slows or the outage pattern worsens.

Final Thoughts

Meta’s Muse AI agent reaching No. 1 on the App Store validates the company’s AI strategy and drove a 12.8% stock surge despite Sunday’s outage. However, overbought technicals and a 29% September rally suggest limited upside at $750.95, with Meyka forecasting $765.49 over 12 months.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.