{"id":3074,"date":"2026-10-06T16:43:10","date_gmt":"2026-10-06T16:43:10","guid":{"rendered":"https:\/\/retrotradingreport.com\/index.php\/2026\/10\/06\/why-this-analyst-expects-meta-stock-to-hit-1000\/"},"modified":"2026-10-06T16:43:10","modified_gmt":"2026-10-06T16:43:10","slug":"why-this-analyst-expects-meta-stock-to-hit-1000","status":"publish","type":"post","link":"https:\/\/retrotradingreport.com\/index.php\/2026\/10\/06\/why-this-analyst-expects-meta-stock-to-hit-1000\/","title":{"rendered":"Why this analyst expects Meta stock to hit $1,000"},"content":{"rendered":"
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Meta Platforms Inc. (META) received a higher price target from Wells Fargo on Tuesday, with analyst Ken Gawrelski raising his target to $1,000 from $796 while maintaining an Overweight rating.<\/p>\n

Gawrelski said investor enthusiasm around Meta\u2019s Muse product cycle was warranted, according to TheFly. <\/p>\n

However, he expects the company\u2019s third-quarter earnings call to temper expectations for meaningful financial contributions from Muse in 2027.<\/p>\n

The comments come as investors assess the potential of Meta\u2019s consumer AI agent while also watching the company\u2019s rising spending and its impact on future earnings.<\/p>\n

Meta stock was down 0.07% on Tuesday.<\/p>\n

Higher spending could weigh on 2027 earnings<\/h2>\n

Wells Fargo said Meta\u2019s 2027 operating expenses could reasonably reach $210 billion to $215 billion, above the Street\u2019s estimate of roughly $202 billion, according to TheFly.<\/p>\n

The firm sees Meta generating earnings per share of $31 to $32 in 2027, compared with a consensus estimate of about $34.<\/p>\n

The spending outlook follows a significant increase in Meta\u2019s cost base. <\/p>\n

Second-quarter revenue rose 28% year over year to $60.8 billion, while costs and expenses increased 55% to $42.03 billion.<\/p>\n

Meta currently expects full-year 2026 expenses of $165 billion to $169 billion and capital expenditures of $130 billion to $145 billion.<\/p>\n

Despite the higher spending outlook, Wells Fargo views the investment cycle as supporting a potentially larger opportunity for Meta\u2019s AI products. <\/p>\n

The firm compared the setup with Meta\u2019s early investment phase for Reels.<\/p>\n

Investors are expected to focus on Meta\u2019s third-quarter commentary for updated spending expectations and management\u2019s timeline for converting Muse adoption into revenue.<\/p>\n

Muse adoption gains momentum<\/h2>\n

Muse has attracted more than 3 million weekly users who send at least one prompt and over 1 million daily users who do so, according to internal data reviewed by The Information. <\/p>\n

Meta launched Muse in September as its consumer AI agent.<\/p>\n

Citigroup also sees significant potential for the product. <\/p>\n

The brokerage estimates Muse could generate more than $27 billion in annual revenue by 2030 as user adoption and engagement increase.<\/p>\n

Citi estimates the revenue could include around $23 billion from transaction-related revenue and roughly $4.5 billion from subscriptions.<\/p>\n

The brokerage said Muse downloads have exceeded 6.6 million since launch, while daily active users have reached 1.8 million as Meta expands awareness and new use cases emerge.<\/p>\n

Citi views Muse as potentially becoming a key entry point for users searching, comparing, and transacting online. <\/p>\n

The brokerage also sees the product benefiting from a first-mover advantage as Meta expands its broader AI strategy.<\/p>\n

Advertising business remains supportive<\/h2>\n

Meta\u2019s core advertising business continues to provide support for the company. <\/p>\n

Deutsche Bank said its latest channel checks were strongest for Meta and Alphabet, according to TheFly.<\/p>\n

The bank cited improved campaign performance, a more valuable mix of Reels and Stories inventory, and growing adoption of Meta\u2019s AI advertising tools.<\/p>\n

Meta faces competition in the personal AI agent market from products including OpenAI\u2019s ChatGPT Dots, Google\u2019s Gemini and Anthropic\u2019s Claude.<\/p>\n

For investors, the company\u2019s upcoming third-quarter results and commentary could provide more clarity on the balance between rising AI-related investment, Muse adoption, and its potential contribution to revenue.<\/p>\n

Wells Fargo\u2019s higher price target reflects its more bullish long-term view, while its 2027 earnings expectations point to potential pressure from higher operating expenses.<\/p>\n

The post Why this analyst expects Meta stock to hit $1,000<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Meta Platforms Inc. (META) received a higher price target from Wells Fargo on Tuesday, with analyst Ken Gawrelski raising his target to $1,000 from $796 while maintaining an Overweight rating.Gawrelski said investor enthusiasm around Meta\u2019s Muse product cycle was warranted, according to TheFly. However, he expects the company\u2019s third-quarter earnings call to temper expectations for…<\/p>\n","protected":false},"author":1,"featured_media":3075,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-3074","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts\/3074","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/comments?post=3074"}],"version-history":[{"count":0,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts\/3074\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/media\/3075"}],"wp:attachment":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/media?parent=3074"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/categories?post=3074"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/tags?post=3074"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}