Meta Platforms (META) Stock Surges as Wall Street Applauds Muse Expansion

Key Highlights

• Shares of Meta are hovering around $768, climbing more than 3% as the stock approaches its all-time peak.
• Morgan Stanley maintained its Overweight stance while lifting its target to $775 following fresh Muse retail agreements.
• The tech giant revealed Muse e-commerce collaborations with Walmart, Best Buy, Dick’s Sporting Goods, and Gap.
• JPMorgan boosted its target to $920, positioning Muse as a serious competitor to ChatGPT in user engagement.
• The company showcased camera-less smart glasses and a $1,299 VR headset slated for spring release.

Meta Platforms (META) shares are changing hands near $768, reflecting a gain of over 3% in current trading. Since introducing its Muse AI assistant earlier this month, the stock has surged nearly 25%.

Meta Platforms, Inc., META

This upward momentum has brought META close to the record level it reached last August. The gains accelerated following a series of major reveals at Meta’s Connect conference held this week.

During his keynote address, CEO Mark Zuckerberg introduced expanded capabilities for Muse. The platform will soon enable users to interact with the AI assistant via Meta’s smart glasses using voice commands rather than text input.

Zuckerberg further revealed the upcoming Muse Charm, a wearable pendant device housing the AI assistant, scheduled for release before year-end. The company is placing significant emphasis on voice-activated AI as a cornerstone of future expansion.

Analyst Community Weighs In on Muse Strategy

Following the conference, JPMorgan elevated its price objective on Meta from $820 to $920. The firm’s analysts suggested Muse has the potential to achieve user adoption levels comparable to ChatGPT.

Morgan Stanley reaffirmed its Overweight rating while setting a $775 target. The investment bank highlighted Meta’s 81.75% gross margin as providing flexibility to maintain competitive transaction fees during the buildout of its commerce infrastructure.

Cantor Fitzgerald increased its price objective to $860 from $680. KeyBanc similarly adjusted its target upward to $900 from $780, emphasizing Muse’s potential as a significant revenue catalyst.

Major Retail Collaborations Take Center Stage

Meta unveiled Muse-powered shopping integrations with major retailers including Walmart, Best Buy, Dick’s Sporting Goods, and Gap. These partnerships enable consumers to complete purchases through the AI assistant without navigating away from the platform.

Morgan Stanley noted these collaborations could streamline the consumer shopping experience significantly. The firm also suggested Meta’s competitive commission structure might compel rivals like Google to match favorable merchant terms.

Amazon emerged as a key potential partner in analyst discussions. Morgan Stanley indicated that Walmart’s participation raises the likelihood of Amazon joining the platform once commercial terms are finalized, to maintain competitive positioning in AI-driven commerce.

Beyond software, Meta demonstrated new hardware innovations at the conference. A camera-free, audio-exclusive version of its smart glasses addresses privacy concerns raised about earlier models that could record without obvious indicators.

A premium $1,299 virtual reality headset will debut next spring, featuring content partnerships with Amazon Prime Video and Disney’s ESPN for 3D entertainment.

Despite widespread optimism, some caution persists. InvestingPro’s valuation models indicate Meta shares may be trading above fair value at present prices, notwithstanding positive sentiment surrounding Muse.

Several aspects of the newly announced retail agreements require further negotiation. Issues including data-sharing protocols, merchant-of-record designations, and loyalty program compatibility will be addressed on an individual partner basis.

Meta’s shares concluded the week trading within 4% of their historical peak.