Meta's Muse AI Agent Drives Wall Street Price Targets to $920 as Shopping Integrations Expand

Wall Street Raises Meta Price Targets Following Connect Event

Meta Platforms wrapped its Connect conference on September 23 with announcements that triggered a wave of analyst upgrades across Wall Street. 1

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JPMorgan raised its price target to $920 from $820 while maintaining an Overweight rating, while TD Cowen lifted its target to $865 from $750. 2

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The stock surged 16.89% over the past week to $777.59, trading near its 52-week high of $779.82. 2

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Meta had already gained nearly 25% since the initial Muse launch earlier in September. 1

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Muse AI Agent Overtakes ChatGPT on iOS Charts

The primary driver behind analyst optimism is Muse, Meta's personal AI agent that has demonstrated unexpected market traction. JPMorgan analyst Doug Anmuth argued the agent "has the potential to become the most widely used consumer AI application since ChatGPT." 1

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Within its first two weeks on the market, Muse overtook ChatGPT as the top free iOS app in the United States and pulled in more downloads than Anthropic's Claude and SpaceXAI's Grok app. 1

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At the September 23 Connect keynote, Meta management demonstrated the AI bot as a personal assistant capable of completing tasks for productivity, shopping, and messaging. 2

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Retail Partnerships Position Muse for Transaction Revenue

Meta expanded Muse's commercial reach at Connect by integrating shopping connectors with Walmart, Best Buy, Sephora, and Wayfair, though Amazon is keeping it out of its own store. 1

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Meta also announced a new PayPal integration for Muse, adding to its existing Shopify partnership, with delivery app Instacart also partnering with the agent. 2

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Within its first two weeks, Muse had connected with more than 2,000 applications. 1

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CEO Mark Zuckerberg confirmed the transaction fee plan at Connect, where users complete purchases through the agent and Meta takes a cut. 1

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Management said the AI agent will be free to use because the company expects to generate revenue over time through a take rate on consumer transactions. 2

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TD Cowen included initial Muse AI user and revenue projections through 2031 in its updated estimates. 2

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Hardware Story Emerges as Potential Upside for 2027

Morgan Stanley kept its Overweight rating and held its price target at $775 after Connect, but flagged Meta's new AI glasses as "a notable improvement in size and capabilities" that "will have to be watched as a potential further upside node for '27." 1

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The engineering breakthrough came from Meta moving the battery and processor into a separate puck, reducing the glasses themselves to roughly the weight of a deck of playing cards. 1

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TD Cowen also raised its revenue, EBITDA, and earnings per share estimates for Meta after management announced new VR and AI Audio Glasses and an AI charm device at the event, all integrated with the Muse AI agent. 2

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Morgan Stanley analysts wrote that shares are "not pricing in any success here," meaning any real traction with the new glasses would represent upside on top of the current stock price. 1

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Meta accounted for 68.7% of global smart glasses shipments in the second quarter, though Samsung and other Android XR partners are preparing rival products later this fall. 1

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